The federal government of the United States was established as a federation of the governments of the original thirteen states
a. True b. False
a
You might also like to view...
Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent
If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent. A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2
If there are equal rates of return between assets in two currencies, then there is
A) purchasing power parity. B) interest rate parity. C) parity of exchange. D) foreign exchange parity.
According to the modern Keynesian view,
a. both the IS and the LM curve slopes are in the intermediate or normal range, where both monetary and fiscal policies are effective in controlling income. b. only the IS curve slope is in the intermediate or normal range and, therefore, only fiscal policy is effective in controlling income. c. only the LM curve slope is in the intermediate or normal range and, therefore, only monetary policy is effective in controlling income. d. neither the IS nor the LM curve slopes are in the intermediate or normal range and, therefore, neither monetary nor fiscal policies are effective in controlling income.
Which component of current U.S. GDP under the expenditure approach is most likely to be negative?
a. consumption b. government purchases c. net exports d. investment