Which is of the following is an example of a progressive tax?
a. An excise tax on a luxury good
b. An income tax whose rate increases as income increases
c. Medicare tax, which is a percentage of income
d. A payroll tax that does not increase beyond a certain level of income
b
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A law that prohibits certain kinds of market behavior such as monopoly and monopolistic practices is called ________
A) a consumer surplus law B) a trust law C) an antitrust law D) an anti-monopoly law
During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to
A) reassure financial markets and promote financial stability. B) stimulate economic growth. C) reduce unemployment. D) reduce the rate of inflation. E) reduce the current account deficit.
The long-run social benefits of infant industry protection are more likely to be realized if
(a) investors believe that tariff barriers are permanent. (b) investors believe that tariff barriers are transitory. (c) tariff barriers increase over time. (d) tariff barriers are replaced with quotas over time.
If the real interest rate is -1.4% and the nominal interest rate is 0.6%, expected inflation equals
A) -2% B) -0.8% C) 0.8% D) 2%