If interest rates rise in the U.S., then other things the same
a. foreigners would buy more U.S. bonds which increases the quantity of loanable funds demanded in the U.S.
b. foreigners would buy more U.S. bonds which reduces the quantity of loanable funds demanded in the U.S.
c. foreigners would buy fewer U.S. bonds which increases the quantity of loanable funds demanded in the U.S.
d. foreigners would buy fewer U.S. bonds which reduces the quantity of loanable funds demanded in the U.S.
b
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Define the benefit principle. List two real world taxes that have the features of a tax based on the benefit principle. Why can't the benefit principle be the sole principle of taxation?
What will be an ideal response?
The downward slope of the demand curve is attributed to:
a. the inverse relationship between price and quantity demanded. b. the direct relationship between income and quantity demanded. c. the direct relationship between price and quantity demanded. d. the inverse relationship between income and quantity demanded. e. the direct relationship between consumer preferences and quantity demanded.
Suppose that the Houston Rockets' management is considering a plan in which fans who donate blood can attend games for $35 instead of the usual $50. If both ticket revenues and blood donations rise with this plan, which of the following is true?
A. The demand for Houston Rockets' tickets is price inelastic. B. The demand for Houston Rockets' tickets is price elastic. C. The demand for blood donations is price elastic. D. The demand for blood donations is price inelastic.
Corporation income taxes are not levied on the income of partnerships or proprietorships.
Answer the following statement true (T) or false (F)