Multinational enterprises use transfer pricing to
A. lower prices of their products and gain market share.
B. reduce their global tax burden.
C. provide managers in a foreign affiliate with an incentive to maximize local profit.
D. move products to the markets where the demand for those goods is relatively inelastic.
Answer: B
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A) surplus item on the current account. B) deficit item on the financial account. C) surplus item on the financial account. D) deficit item on the current account.
Of the following countries, in which one was the true marginal tax rate faced by the typical worker lowest and the average number of hours worked per week highest from 1993 through 1996?
A) Canada B) Germany C) Italy D) the United States
If actual inflation is less than expected inflation, which of the following will be true?
A) The Phillips curve will be a vertical line. B) Real wages will fall. C) The unemployment rate will fall. D) Real wages will rise.
The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________
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