One argument advanced in favor of not increasing the income tax on individuals with high income is that
A) increasing income tax increases wealth which contributes to increases in GDP.
B) increasing the income tax on these individuals will reduce economic efficiency.
C) not increasing income taxes will discourage corporations from increasing investment.
D) increasing the income tax affects mostly middle-income and low-income individuals who are already paying heavy income taxes.
B
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Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries. The rate at which one country's currency can be traded for another is called:
A) the trade balance. B) capital inflows. C) capital outflows. D) the exchange rate.
The purchasing power parity method of comparing income across countries is based on
What will be an ideal response?
If the multiplier is 5, the MPC is
A. .1. B. .2. C. .5. D. .8.
If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries
A) the long-run aggregate supply curve will shift to the right. B) the long-run aggregate supply curve will shift to the left. C) we will move up along the long-run aggregate supply curve. D) we will move down along the long-run aggregate supply curve.