"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant
Indicate whether the statement is true or false
FALSE
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A tax inversion merger ________ legally reduce the combined firms' taxes and these mergers ________.
A) can; are only horizontal mergers B) cannot; are only vertical mergers C) can; can be horizontal or vertical mergers D) cannot; can be horizontal or vertical mergers
What is a currency board?
a. A fixed exchange rate that, by law, exchanges domestic currency for a specified foreign currency at a fixed exchange rate. b. A floating exchange rate. c. A managed floating exchange-rate policy that the government adjusts periodically according to some economic indicator. d. A laissez-faire exchange-rate policy. e. An interventionist exchange-rate policy.
Which of the following is an example of moral hazard?
a. When a family's belongings are protected against theft and they take special care to look after the house. b. An individual buys a new auto insurance policy which includes a special payment if the car skids on the ice and the person then begins driving recklessly on ice. c. When a country expects assistance in the event of a currency crisis and therefore takes special care to avoid such a crisis. d. When decision-makers expect special assistance in the event of an unfavorable outcome and their behavior changes in such a way to avoid that outcome entirely. e. When a person with health insurance takes great care not to catch a serious cold.
Is it possible for a serious third party to emerge in the United States, positioned ideologically between the Democrats on the left and the Republicans on the right? Why or why not?
What will be an ideal response?