According to the benefit principle, the Social Security payroll tax is _____. According the ability-to-pay principle, the Social Security payroll tax is _____
a. equitable; equitable
b. equitable; inequitable
c. inequitable; equitable
d. inequitable; inequitable
b
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If the interest rate on a bank deposit in the United States is 3 percent while a similar deposit earns 6 percent in Britain, then we could expect that deposits would flow to
A) Britain if the pound is expected to depreciate more than 3 percent. B) the United States regardless of exchange rate expectations. C) the United States if the dollar is expected to appreciate less than 3 percent. D) Britain if the pound is expected to depreciate less than 3 percent. E) Britain regardless of exchange rate expectations.
Suppose a national government increased spending by $100 billion. The net effect on the banking system would be to:
a. Reduce bank reserves by $100 billion and reduce bank deposits by $100 billion. b. Increase bank reserves by $100 billion and increase bank deposits by $100 billion. c. Decrease government checking accounts in the banking system by $100 billion and increase the public's checking accounts there by $100 billion. d. Increase government checking accounts in the banking system by $100 billion and reduce the public's checking accounts there by $100 billion. e. Increase government checking accounts in the banking system by $100 billion and increase the public's checking accounts there by $100 billion.
Bonds may be issued by all of the following except
A. Corporations. B. The federal government. C. Individuals. D. Local governments.
The U.S. Social Security tax is an example of a
A) progressive tax. B) proportional tax. C) premium tax. D) regressive tax.