The purchasing power parity theory of exchange rate determination holds that the exchange rate between any two national currencies is fixed to reflect differences in the price levels in the two countries
Indicate whether the statement is true or false.
Answer: False.
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How do current tax laws in the United States favor employer-based health care insurance?
A) Individuals who receive health insurance benefits are allowed to deduct the value of these benefits from their taxable income. B) Individuals who receive health insurance benefits do not pay taxes on the value of these benefits. C) Employers who provide health insurance benefits are reimbursed by the government and are not taxed on these reimbursements. D) Health insurance companies that provide insurance to employers are subject to a lower tax rate than those insurance companies that provide insurance to private individuals.
Assume an economy with a single bank, no excess reserves, no savings accounts, and no currency held by the public. With a required reserve ratio of .4, the demand deposit expansion multiplier is
A) 20. B) 10. C) 4. D) 2.5.
Under monopoly, resources are allocated as efficiently as in perfect competition.
Answer the following statement true (T) or false (F)
When a park is funded by visitors, but not by taxpayers in general,
a. there will be too few parks, because most people will not pay to use a park. b. visitors will be better served, because poor service would lead to reductions in revenues. c. park budgets will decline. d. park quality will decline.