Refer to the data. If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the tax:
Answer the question on the basis of the following before-tax consumption schedule for a closed economy:
A. enhances the economy's built-in stability.
B. reduces the economy's built-in stability.
C. neither increases nor decreases built-in stability.
D. increases the MPC and therefore increases the size of the multiplier.
C. neither increases nor decreases built-in stability.
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The debt service ratio is defined as
(a) the ratio of total debt to export earnings. (b) the ratio of total debt to GDP. (c) the ratio of payments on foreign debt to export earnings. (d) the ratio of payments on foreign debt to GDP.
National income is calculated as GDP:
a. plus depreciation. b. plus exports. c. minus imports. d. minus depreciation.
Moral hazard arises when principals find it costly to monitor agents
Indicate whether the statement is true or false
In 2002, which of the following countries experienced a currency depreciation resulting in their inability to pay back what they had borrowed in U.S. dollars?
a. Argentina b. Brazil c. Thailand d. Malaysia