A needed reform in the U.S. income tax system that would reduce the costs of inflation is to
A) go back to taxing nominal wage and salary income.
B) start taxing real wage and salary income.
C) go back to taxing nominal interest income.
D) tax real interest income.
D
You might also like to view...
Which of the following will NOT be included in a bank's liability?
A) Short-term borrowing by the bank B) Demand deposits held with the bank C) Cash equivalents of the bank D) Long-term debt of the bank
The interest rate that equates the present value of payments received from a debt instrument with its value today is the
A) simple interest rate. B) current yield. C) yield to maturity. D) real interest rate.
Lower interest rates cause the velocity of M1 to
A) turn negative. B) move erratically. C) increase. D) decline.
With adaptive expectations, the expected inflation rate for the current year ________ the actual inflation rate for the previous year
A) is greater than B) is less than C) is equal to D) is unrelated to