A U.S. presidential candidate promises to redistribute income and encourage economic growth. Why might these goals be in conflict?
a. The poor, on average, save more than the rich. Taxing the incomes of the rich to transfer to the poor will result in an increase in total savings.
b. Taxing the incomes of the rich to transfer to the poor will result in the rich saving more
c. Taxing the incomes of the rich to transfer to the poor will provide disincentives for work and capital accumulation.
d. Taxing the incomes of the rich to transfer to the poor will provide incentives for the rich to work more to make up for income lost to taxes.
c
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Industries that are truly critical to the national defense should be protected from foreign competition if that is the only way to ensure their existence
a. True b. False Indicate whether the statement is true or false
Suppose in 2000 . nominal GDP in Russia was 1000 rubles and it increased to 2000 rubles in 2001 . If we know that the base year is 2000 and the GDP deflator in 2001 is 100, then of the 1000 ruble increase in nominal GDP, ______ represents an increase in prices only
a. none, or 0 rubles b. all, or 1000 rubles c. 500 rubles d. 2000 rubles e. 100 rubles