To pay interest to those U.S. residents who hold government bonds, the government must tax other U.S. residents, implying that the more we redistribute income among residents to cover interest payments, the higher the average tax rate will have to be
a. True
b. False
A
Economics
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When a reward might not occur, economists incorporate the uncertainty by multiplying the reward by a:
A) positive factor more than 1. B) positive factor less than 1. C) negative factor more than -1. D) negative factor less than -1.
Economics
In what year was the Bretton Woods system of currency exchange set up?
A) 1912 B) 1924 C) 1944 D) 1969
Economics
When does an incomplete contract prove beneficial?
Economics
One signal that the U.S. dollar was overvalued in the early 1970s was the
a. stable price of gold. b. volume of international trade. c. recurring balance-of-trade deficits in the U.S. d. recurring balance-of-trade deficits in European countries.
Economics