How do taxes and government cash transfer payments alter the measured distribution of income?
a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included.
b. Cash transfer payments are included in the official data on income distribution, but taxes are not.
c. Both taxes and cash transfer payments are included in the official data on income distribution
d. Neither taxes or cash transfer payments are included in the official data on income distribution
b
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All else held constant, the international value of foreign currencies will increase against the U.S. dollar if ________.
A. U.S. citizens reduce spending on imports B. there are withdrawals of funds by foreigners from U.S. money markets C. there is an increase in the number of foreign tourists in the United States D. the U.S. Federal Reserve raises real interest rates
A debtor's quantity of credit demanded and the rate of interest are likely to be:
A) positively correlated. B) unrelated. C) negatively correlated. D) positively related if the rate of interest is below 10% and negatively related if it is above 10%.