Refer to the scenario above. If the fourth household pays the lowest percentage of its income as tax, it can be inferred that the government follows a ________ tax system
A) progressive
B) proportional
C) cardinal
D) regressive
D
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In recent cases, the U.S. placed quotas or protectionist tariffs on imported steel and imported microchips. In both cases the damage to "downstream" industries was obvious to all and relatively easy to quantify and demonstrate. Assuming that the
lawmakers are not plain dumb, why did they enact these protectionist policies?
Just like a monopolist, a monopolistically competitive firm:
A. sets the price according to marginal revenue and marginal cost; the demand curve doesn't matter. B. cannot sell additional units of output without lowering the price. C. is a price taker. D. faces a perfectly elastic demand curve.
Foreign direct investment is when:
A. when a foreign government directly invests into a firm. B. investors buy foreign financial assets like stocks, bonds, or government securities. C. investment is funded by foreign sources but operated domestically. D. a firm runs part of its operation abroad or invests in another company abroad.
Use the following graphs to answer the next question.
In the graphs, the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 4%. What should the Fed do to achieve a noninflationary, full-employment level of real GDP?
A. Decrease the money supply from $225 billion to $150 billion. B. Increase the money supply from $150 billion to $225 billion. C. Increase the money supply from $75 billion to $150 billion. D. Make no change in the money supply.