The tax incidence depends on whether the tax is levied on buyers or sellers
a. True
b. False
Indicate whether the statement is true or false
False
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International capital flows are purchases and sales of ____ across national borders.
A. goods B. financial assets C. services D. commodities
What is the difference between foreign direct investment and foreign portfolio investment?
A) Foreign direct investment involves purchases of foreign stock or bonds by individuals or firms, while foreign portfolio investment involves a firm purchasing or building a facility in a foreign country. B) Individuals engage in foreign portfolio investment, but only firms can engage in foreign direct investment. C) Foreign direct investment can give a low-income country access to funds and technology it would not otherwise have, but foreign portfolio investment does not expand that access. D) Foreign direct investment only takes place when governments make official purchases or foreign investments, while foreign portfolio investment takes place when firms, individuals, or the government purchase foreign investments.
Gresham's Law states that:
a. Good money tends to drive bad money out of circulation. b. Virtual and electronic money tends to drive physical money out of circulation. c. Bad money tends to drive good money circulation. c. In times of financial instability, nations should "gresham," which means to back their currencies by precious metals. d. In times of financial instability, commodity-backed money tends to drive electronic and virtual currencies from circulation.
Which of the following decreases the demand for money?
A) an increase in income B) an increase in real GDP C) a decrease in the price level D) expectations of higher bond prices