When most shocks originate in the monetary sector, it is generally better to have

A) a flexible rate system.
B) a fixed rate system.
C) a gold standard.
D) a managed float.

B

Economics

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Diego's annual income increased from $20,000 to $25,000 . If Diego faces a 40 percent effective marginal tax rate, the $5,000 increase in income will expand his disposable income by

a. $2,000. b. $3,000. c. $3,600. d. $5,000.

Economics