The tax code in the United States allows for the deductibility of mortgage interest, but not for interest on credit cards. Why is this difference allowed to exist?
What will be an ideal response?
Increasing home ownership is seen as increasing private investment, whereas credit cards are
viewed as consumption mechanisms.
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The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is ________, which demonstrates that changes in the inflation rate ________ effect on unemployment
A) horizontal; have no B) an upward sloping straight line with a 45 degree slope; have an C) vertical; have no D) vertical; have an E) a downward sloping straight line with a 45 degree slope; have an
Which of the following will change the slopes of your indifference curves between gasoline and movie rentals?
A) a change in your preferences for either of the two goods B) only a change in the price of either of the two goods C) only a change in your income D) Both a change in the price of either good and a change in income will change the slopes of your indifference curves.
In perfect competition, marginal revenue always equals
a. total revenue. b. price. c. average cost. d. marginal fixed cost.
The situation where a single firm can supply the product to an entire market at a lower unit cost than if the market were split among a number of competing firms, is called a:
A. Dominant firm oligopoly B. Structured market C. Natural monopoly D. Trust