Consider the bonds below. Which is subject to the greatest interest-rate risk?
A. A 20-year corporate bond
B. A 30-year fixed-rate mortgage (fixed payment loan)
C. A consol
D. A Treasury bill
Answer: C
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Which of the following countries does not come close to the free market benchmark?
A) Cuba B) Japan C) the United States D) France
The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of
A) discretionary monetary policy. B) the discretionary multiplier effect. C) discretionary fiscal policy. D) automatic stabilizers.
A progressive tax is one in which the fraction of income paid in taxes rises as a person's income increases
a. True b. False Indicate whether the statement is true or false
Suppose the government taxes 30 percent of the first $70,000 and 50 percent of all income above $70,000 . For a person earning $200,000 . the marginal tax rate is
a. 30 percent, and the average tax rate is 50 percent. b. 30 percent, and the average tax rate is 43 percent. c. 50 percent, and the average tax rate is 40 percent. d. 50 percent, and the average tax rate is 43 percent.