Suppose you want to buy a boat, but you know that interest paid on a boat loan is not tax deductible. Therefore, you take out a home equity loan, the interest on which is still tax deductible. This procedure is an example of
a. illegal tax avoidance
b. illegal tax evasion
c. legal tax avoidance
d. legal tax evasion
e. the answer cannot be determined from the information given
C
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The Bank of Lithasia plans to increase its revenue by using demand deposits held with the bank for long-term investments. What is this process known as? Is there any risk associated with this process? If yes, how can the risk be reduced?
What will be an ideal response?
If potential GDP for the first quarter of 2013 = $75.8 billion, nominal GDP for the first quarter of 2013 = $80.3 billion, and the GDP deflator = 109, then the output gap was
A) 2.8%. B) 4.7%. C) 5.6%. D) 5.9%.
Which of the following characteristics is most important in differentiating between perfect competition and all other types of markets?
A) whether or not the product is standardized B) whether or not there is complete market information about price C) whether or not firms are price takers D) All of the above are equally important.
In the late 1800s and early 1900s, farmers in the Great Lakes region
a. specialized in grain production. b. specialized in production of fresh fruits and vegetables. c. switched their emphasis from grain production to dairy farming. d. earned high profits by raising cattle for beef production.