When an exchange-rate crisis befalls a pegged currency, experience suggests that damage to the economy may be minimized by ________
A) appealing to creditors to provide more liquidity
B) rapid adoption of a currency board
C) abandoning the peg
D) launching speculative counter-attacks
C
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If the current level of GDP exceeds full employment, the level of GDP can be reduced by
A) reducing the money supply. B) lowering interest rates. C) increasing spending. D) reducing taxes.
If workers are in the backward-bending section of their labor supply curves, than an increase in the income tax rate will
A) increase the tax revenue and increase the number of hours worked. B) increase the tax revenue and decrease the number of hours worked. C) decrease the tax revenue and increase the number of hours worked. D) decrease the tax revenue and decrease the number of hours worked.
Which of the following statements is correct?
a. A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. b. A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers. c. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers. d. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.
Which statement is true?
A. Russia has embraced capitalism at a much faster rate than China. B. The Russian government today is moving much closer to central planning than when the country was part of the Soviet Union. C. The standard of living in Russia is higher than that of the United States. D. None of the statements are true.