Refer to the above figures. Which panel represents the expected relationship between tax revenue and the sales tax rate if static tax analysis is used?
A) Panel 1
B) Panel 2
C) Panel 3
D) Panel 4
A
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What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A. An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. B. A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. C. An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker. D. An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.
A higher exchange rate for the U.S. dollar means that
A) the U.S. dollar trades for less foreign currency. B ) the U.S. dollar trades for more foreign currency. C) foreign currency has risen in value relative to the dollar D) the U.S. dollar has fallen in value relative to the foreign currency.
Dino spends his income on two goods, cigars and peppermints. He considers both goods to be normal goods. If Dino's income decreases and the prices of the two goods remain constant, he will purchase:
A. more cigars and fewer peppermints. B. more cigars and more peppermints. C. fewer cigars and more peppermints. D. fewer cigars and fewer peppermints.
If C = consumption, G = government expenditures, and I = gross private investment expenditures, the mathematical representation of Gross Domestic Product (GDP) using the expenditure approach is
A. Gross Domestic Product (GDP) = C + Imports. B. Gross Domestic Product (GDP) = C + I + G + Imports. C. Gross Domestic Product (GDP) = C + I + G + Transfers. D. Gross Domestic Product (GDP) = C + I + G + Net exports.