The level of fiscal federalism in the European Union is
A) too big to cushion member countries from adverse economic events.
B) too small to cushion member countries from adverse economic events.
C) appropriate to cushion member countries from adverse economic events.
D) too big relative to the one in the U.S.
E) similar in its level to that of the U.S.
B
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Who owns the Federal Reserve banks?
A) the private commercial banks in each district which are members of the Federal Reserve System B) those households which have purchased stock in Federal Reserve System C) the federal government D) the governments of the states in which the banks are located
As illustrated in the textbook, the government can further increase the support price of a commodity by purchasing excess supplies and using a:
A) production quota. B) consumption tax. C) excess profits tax. D) minimum wage.
The rule of 72 implies that a country with a growth rate of 6 percent will double its income in about:
A. 8 years. B. 16 years. C. 12 years. D. 6 years.
Refer to the diagrams for two separate product markets. Assume that society's optimal level of output in each market is Q 0 and that government purposely shifts the market supply curve from S to S 1 in diagram (a) on the left and from S to S 2 in
diagram (b) on the right. We can conclude that the government is correcting for:
A. negative externalities in diagram (a) and positive externalities in diagram (b).
B. positive externalities in diagram (a) and negative externalities in diagram (b).
C. negative externalities in both diagrams.
D. positive externalities in both diagrams.