A theory of taxation that states that ________ is the ability-to-pay principle.
A. citizens should bear tax burdens in line with their ability to pay taxes
B. taxpayers should contribute to the government in a greater proportion than the benefits they receive from public expenditures
C. taxpayers should contribute to the government in a smaller proportion than the benefits they receive from public expenditures
D. taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures
Answer: A
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In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is
A) a leftward shift in Germany's demand for money curve. B) a downward movement along Germany's demand for money curve. C) a rightward shift in Germany's money supply curve. D) an upward movement along Germany's demand for money curve.
Explain the differences between the public debt and the government budget deficit
What will be an ideal response?
If the Fed targets the interest rate, then: a. the money supply will grow at a more controlled rate
b. monetary policy will reinforce fluctuations in economic activity. c. the price level will be more stable in the long run. d. money demand will be more stable. e. velocity will be less stable.
If monetary and fiscal policy are going to promote economic stability, they must _________ during a recession, and _________ during an economic boom. (Fill in the blank)
a. add stimulus; apply restraint b. apply restraint; add stimulus c. add stimulus; add stimulus d. apply restraint; apply restraint