The "incidence of a tax" is the term used to indicate
a. the responsibility for collecting the tax.
b. who actually bears the tax burden.
c. who the tax is initially levied on.
d. the regressive rate structure of the tax.
B
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According to the quantity theory of money, inflation results when excessive paper money is in circulation
Indicate whether the statement is true or false
If the world price of a good is equal to its no-trade equilibrium price, the country will import more of the good from other nations
a. True b. False Indicate whether the statement is true or false
Proponents of fixed exchange rates, who argue that these rates eliminate uncertainty and therefore promote international trade, sometimes fail to recognize:
A. that international trade is bad for the economy and should not be promoted. B. that exchange rates do not matter to businesses, so the uncertainty has no impact. C. that fixed exchange rates are more volatile than flexible exchange rates. D. that fixed exchange rates may not remain fixed forever.
The low point of the Great Depression was reached in the year
A. 1929. B. 1931. C. 1933. D. 1935.