What is the ability to pay principle? Does the U.S. federal income tax follow this principle or not? Explain your answer
The ability to pay principle is simply that those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes. The federal income tax is a good example of this principle because the rich pay more taxes than the poor.
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If loans are $69,000 . excess reserves are $1,400, and checkable deposits are $80,000 . then the required reserve ratio must be:
a. 1.75 percent. b. 12 percent. c. 13.75 percent. d. 17.5 percent. e. 0.12 percent.
From a point inside the production possibility frontier, a. more of one good can be produced only by sacrificing some output of another good
b. it is possible to increase production of both goods. c. it is impossible to increase production of either good with current resources and technology. d. increased output of both goods can only occur if the production possibility curve shifts outward.