The intent of indexing is to
A. raise tax revenue automatically during inflation.
B. shift the short-run Phillips curve to the right.
C. take most of the sting out of inflation.
D. reduce inflation gradually.
Answer: C
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Unlike with Social Security taxes, there is no threshold on earnings beyond which the Medicare tax collection stops
Indicate whether the statement is true or false
The country in which a form of industrial organization in which a group of companies own stock in each other and has a bank that owns stock in each firm is
A) the United Kingdom. B) the United States. C) Japan. D) Germany.
Commitment devices are:
A. methods to increase the price of your vices. B. methods to lower the price of your virtues. C. successful whether weak or strong, depending on the situation. D. All of these statements are true.
If Sabrina exchanges dollars for Japanese yen, she
a. causes the balance of payments to become unbalanced, in the short run b. engages in arbitrage c. supplies yen on the foreign exchange market d. supplies dollars on the foreign exchange market e. first demands dollars then uses them to buy Japanese goods which can be converted into yen