Demand-side inflation is the rise in inflation caused by rapid growth of aggregate demand.
Answer the following statement true (T) or false (F)
True
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If the geography hypothesis holds, then:
A) poorer countries are permanently disadvantaged. B) living standards in poorer countries can be substantially improved. C) poorer countries are likely to catch up with richer countries very fast. D) cultural beliefs can be considered to be an important source of economic prosperity.
Robert applied for health insurance but did not mention in the application form that his family has a history of heart ailments that are considered to be hereditary. What will happen if several customers like Robert purchase the insurance?
What will be an ideal response?
According to the Ricardian view of government deficits,
A. any future burden of tax financing should be ignored. B. government deficits reduce interest rates. C. taxpayers are less capable of saving when debt finance is used rather than tax finance. D. the private sector supply of loanable funds will increase in the face of government deficits.
The marginal income tax rate is:
A. always less than the average tax rate. B. the tax rate applied to an additional dollar of income. C. always equal to the average tax rate. D. the tax rate applied to all income.