The horizontal-equity principle of taxation is not easy to use in practice because
A) different people receive different levels of government benefits even if their incomes are the same.
B) people can use tax loopholes to reduce their incomes below the incomes of other taxpayers.
C) it is difficult to determine whether people are in the same economic situation.
D) some people engage in rent seeking to reduce their taxes below the level other people pay.
C
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If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities. b. encourage banks to provide loans by raising the discount rate. c. encourage banks to provide loans by selling government securities. d. restrict bank lending by selling government securities. e. restrict bank lending by lowering the federal funds rate.
The real exchange rate generally has ______ relationship with aggregate expenditure.
A. a negative B. a positive C. no D. a constant
Which of the following will cause a decrease in the demand for peanut butter?
a. an increase in the supply of peanut butter b. an increase in the price of peanut butter c. a doubling of the price of bread d. a drought in Georgia that destroyed 30 percent of the peanut crop e. an increase in consumer income
Suppose when you are offered $8.00 per hour to work in the campus library, you choose not to work, but when you are offered $12.00 per hour, you accept a part-time position. Your behavior can best be explained by the fact that your supply of labor curve is:
A. upward-sloping. B. vertical. C. horizontal. D. downward-sloping.