Dividends are paid by corporations out of _____ leading to _____
a. pre-tax income; dividends escaping taxation
b. pre-tax income; the double taxation of saving
c. after-tax income; dividends escaping taxation
d. after-tax income; the double taxation of saving
d
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Points to the right of the IS schedule indicate that
a. investment plus government spending will exceed saving plus taxes. b. the amount of money supplied exceeds the amount of money demanded. c. saving plus taxes will exceed investment plus government spending. d. the amount of money demanded exceeds the amount of money supplied.
If the dollar/pound exchange rate is $2/£, a Big Mac costs $5 in New York City and costs £4 in London, the pound is ________, and U.S. tourists will be ________
A) overvalued; better off in London B) overvalued; better off in New York C) undervalued; better off in London D) undervalued; better off in New York