A taxpayer pays __________ tax rate on additional income if the income tax structure is progressive, __________ tax rate on additional income if the income tax structure is proportional, and __________ tax rate on additional income if the income tax structure is regressive
A) a higher; a lower; the same
B) a higher; the same; a lower
C) a lower; a higher; the same
D) the same; a lower; a higher
E) the same; a higher; a lower
B
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You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. If inflation over the year is 2%, what is the real interest rate you are paying?
A) 2% B) 2.5% C) 3% D) 5%
Which of the following is not a legitimate reason for maintaining federal budget deficits? a. Deficits boost domestic saving, which in the long run could promote economic growth. b. Deficits help reduce the size and duration of recessions through automatic stabilizers. c. Deficits are used to finance capital projects
d. Public spending through deficit financing wins support from the voters. e. A federal budget deficit stimulates aggregate demand.
Which of the following products would be most difficult to resell?
a. Girl Scout cookies b. suitcases c. automobiles d. pencils e. medical exams
In the U.S. a television costs $400 . In South Africa the same television costs 3000 rand (the currency of South Africa). The nominal exchange rate is 8 rand per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the television cheapest?