Tax incidence refers to
a. what product or service the tax is levied on.
b. who bears the tax burden.
c. what sector of the economy is most affected by the tax.
d. the dollar value of the tax revenues.
b
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Financial intermediaries are able to act as delegated monitors for individual savers because
A) other investors are unable to gain a free ride on their monitoring efforts. B) borrowers consider this role to be traditional for financial intermediaries and are willing to put up with it. C) the federal government has granted them waivers from laws protecting privacy. D) they employ a vast network of private detectives to carry out their monitoring role.
Jim has the following assets and liabilities:Credit Card balance$2,000Cash$500Government bonds$2,000Stocks$5,000Checking$750Car loan balance$5,000Car$15,000Which of the following actions would decrease Jim's money demand by $200?
A. Jim writes a $200 check for cash and holds the cash. B. Jim sells a $200 government bond and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim sells $200 worth of stocks and puts the proceeds in his checking account.
The European Union established a cap-and-trade system which was designed to
A) eliminate air pollution and greenhouse gases by the year 2020. B) reduce carbon dioxide emissions. C) remove all taxes from polluting industries. D) provide fast growing developing countries with the technology to reduce their carbon emissions.