If the euro faces a currency crisis with its value falling from $1.40 per euro to $1.20 per euro, who would benefit the most?
a) An American car manufacturer trying to export cars to Spain.
b) Universal Studios Orlando, which wants more European tourists to visit its theme parks.
c) The Brown family from Florida who plans to visit Paris next month.
d) Jared, an American investor who purchased a 10,000 euro bond last year.
Ans: c) The Brown family from Florida who plans to visit Paris next month.
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According to Buchanan and Wagner, why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?
A) In a democracy, expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated with contractionary fiscal policy. B) In a democracy, contractionary fiscal policy prescriptions are more policitally popular than are the policy prescriptions associated with expansionary fiscal policy. C) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing recessionary gaps, but not inflationary gaps. D) ?They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing inflationary gaps, but not recessioinary gaps. E) ?none of the above
?Scenario: You are a U.S. taxpayer who had taxable income of? $200,000 in 2017. You paid? $49,400 in individual income? taxes, and you paid 33 cents of the last dollar you earned as individual income tax. Your marginal tax rate is? ________
A. 33 percent B. 0 percent C. 49.4 percent D. 24.7 percent
Figure 12.1 shows the market for a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, the market price will be ________ and each firm will produce and sell a quantity of ________.
A. $10; 200 B. $10; 100 C. $5; 500 D. $5; 250
If the economy is on the flat part of the aggregate supply curve, contractionary fiscal policy works well to decrease the price level with little decrease output.
Answer the following statement true (T) or false (F)