A decrease in U.S. federal government budget deficits that lowers U.S. interest rates relative to the rest of the world should
A) decrease net exports.
B) increase foreign portfolio investment.
C) lead to a current account surplus.
D) lower the trade balance.
E) cause the dollar to appreciate.
B
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Which of the following statements is false?
a. The largest source of state and local governments tax revenue is sales and excise taxes. b. The largest source of federal government tax revenue is individual income taxes. c. A sales tax on food is a regressive tax. d. A proportional tax is equal to a fixed dollar amount.
If two families are equally situated except that one rents and the other owns their home, the existing tax system will lead to
a. vertical inequity. b. equal treatment of both. c. horizontal inequity. d. equal burden sharing.
To move from gross domestic product (GDP) to gross national product (GNP), one must:
A. add depreciation to GDP. B. subtract depreciation from GDP. C. add net foreign factor income to GDP. D. subtract net foreign factor income from GDP.
A bond is essentially:
A. an equity. B. a loan. C. a stock. D. a derivative.