Compare and contrast a general retail sales tax with a value added tax
What will be an ideal response?
Both taxes have the same tax base. A general retail sales tax is easier to compute, requires less monitoring by the government, is more transparent to taxpayers, and imposes a taxpaying burden of fewer individuals/organizations. A value added tax, on the other hand, makes it easier to avoid double taxation by not requiring wholesale sales to be differentiated from retail sales.
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The supply of loanable funds slopes
a. upward because an increase in the interest rate induces people to save more. b. downward because an increase in the interest rate induces people to save less. c. downward because an increase in the interest rate induces people to invest less. d. upward because an increase in the interest rate induces people to invest more.
Use the following reserve-requirements table to answer the next question.Type of DepositReserve RequirementCheckable deposits $7.8 - $48.3 million3%Over $48.3 million10Noncheckable personal savings and time deposits0If a bank has checkable deposits of $45 million and reserves of $2 million, then its excess reserves are
A. $1.65 million. B. $1.35 million. C. $0.35 million. D. $0.65 million.
In a flexible exchange rate regime, a reduction in the expected future exchange rate will cause
A) the IP curve to shift to the left/up. B) the IP curve to shift to the right/down. C) a movement along the IP curve. D) neither a shift nor movement along the IP curve.
The law of diminishing marginal product shows the relationship
A) between accounting and economic profits. B) between short-run and long-run outputs of a firm. C) between inputs and outputs for a firm in the short run. D) between inputs and outputs for a firm in the long run.