A reduction in the tax rate on income from saving would
a. most directly benefit the poor in the short run.
b. increase real wages over time.
c. decrease the capital stock over time.
d. decrease productivity over time.
b
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An export is any good that is:
A) rationed and licensed by the government. B) produced and consumed domestically. C) produced by public-sector firms. D) produced domestically, but sold abroad.
A government-inhibited good is one that
A) the political process has determined is socially undesirable. B) the political process has determined is socially desirable. C) freely competitive markets have determined is socially desirable. D) we want to encourage the consumption of.
In the short run, there are large and persistent deviations between actual exchange rates and exchange rates predicted using purchasing power parity because of:
a. Discretionary monetary policy. b. International capital flows could cause short-term differences. c. Discretionary fiscal policy. d. Widely different inflation rates in the two nations. e. None of the above.
A department store chain in Japan uses yen to purchase 500,000 U.S. dollars from a U.S. bank. It then uses these dollars to buy DVDs from a U.S. filmmaker. As a result of these transactions: A. By how much and in what direction did U.S. net exports change? B. By how much and in which direction did U.S. net capital outflow change?