The excess burden of the corporate income tax is
A. almost zero.
B. greatest when the interest elasticity of saving is zero.
C. a result of the combined distortion in the pattern of investment and a reduction in total
investment.
D. none of these answer options are correct.
C. a result of the combined distortion in the pattern of investment and a reduction in total
investment.
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All of the following are preconditions for economic growth EXCEPT i. property rights. ii. democracy. iii. free markets
A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
If a firm sells its output at a price greater than AVC, it will earn economic profit
a. True b. False Indicate whether the statement is true or false
In recent years, the Federal Reserve has conducted policy by setting a target for the
a. size of the money supply. b. growth rate of the money supply. c. federal funds rate. d. discount rate.
In Figure 1 above if the economy were at Y3 then we would expect there to be:
A. an increase in consumption spending. B. a reduction in inventories. C. an increase in inventories. D. no change in inventories.