Which of the following statements is false?
A. At this time, there is not clear consensus on what the best tax base is.
B. The double taxation of saving tends to increase the saving rate because people have to save more to keep the after-tax yield constant.
C. An income tax taxes savings twice only if consumption is the measure used to gauge a person's ability to pay.
D. Proponents of income as a tax base argue that you should not be taxed on what you draw out of the common pot, but rather on the basis of your ability to draw from the pot.
Answer: B
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A strategy is called a pure strategy if it involves choosing ________
A) one particular action for a situation B) different combinations of actions for a situation C) an action that yields a higher payoff to the opponent D) an action that yields zero payoff to the player
M2 includes
A) large-denomination time deposits. B) institutional MMMFs. C) commercial paper. D) M1.
Which of the following represents a positive supply shock, a negative supply shock, a positive demand shock, or a negative demand shock?
a. The government unexpectedly doubles all personal income tax rates. b. A newly discovered infectious disease shuts down all international ports indefinitely. c. Major technological progress occurs in the market for green energy. d. An earthquake wipes out 60% of the manufacturing capacity of an economy. e. The government unexpectedly eliminates the inheritance tax and the capital gains tax on sales of stocks and bonds.
Which of the following factors might make capital mobility less than perfect?
a. Risks due to exchange rate changes b. Differential risk on the assets of different countries c. Technological progress, which improves the quality of information on foreign assets d. both a and b. e. All of the above