Compared to other countries, the U.S. federal government relies
A. more heavily on direct taxes than do governments of other countries.
B. less heavily on direct taxes than do governments of other countries.
C. more heavily on indirect taxes than do governments of other countries.
D. on direct taxes about as heavily as do governments of other countries.
Answer: A
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A tax of 20 percent per unit of imported garlic is an example of a(n)
A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) a disadvantageous tariff
If the price level is constant in the short run,
A) the short-run aggregate demand curve is horizontal. B) the short-run aggregate demand curve is vertical. C) the short-run aggregate supply curve is horizontal. D) the short-run aggregate supply curve is vertical.
If the market interest rate increases, then
a. the cost of borrowing increases and so saving falls b. the opportunity cost of consuming a good in the future increases and saving, therefore, increases c. the opportunity cost of consuming a good in the future increases and saving, therefore, falls d. the reward for saving diminishes and so present consumption increases e. the reward for saving increases and so saving increases
Which of the following constitutes a currency drain from the banking system?
a. Purchase of government securities b. New demand deposits c. Banks lending out all excess reserves d. A banking panic that leads to large withdrawals from banks e. Lower required reserve holdings