The ultimate burden of the corporate profits tax appears to depend on all of the following except
A. the relative capital/labor intensity of the corporate and noncorporate sectors.
B. the tax rate structure of the corporate profits tax.
C. the ease with which capital and labor can be substituted in the corporate and noncorporate sectors.
D. the elasticities of demand for the products produced in the corporate and noncorporate sectors.
Answer: B
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In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.
If the present value of an individual's savings account is $100,000, what is its future value in 5 years if the account earns an annual interest rate of 2 percent?
A) $112,125.40 B) $109,582.03 C) $110,250.00 D) $110,408.08
A quality-of-life index measures absolute poverty levels
a. True b. False Indicate whether the statement is true or false
To fight inflation, the government may
a. decrease aggregate demand, which will also lead to lower unemployment rates. b. increase aggregate demand, which will also lead to lower unemployment rates. c. increase aggregate demand, which will also lead to higher unemployment rates. d. decrease aggregate demand, which will also lead to higher unemployment rates.