What effects do immigrants have on tax revenues and government spending in the United States?
What will be an ideal response?
The effects that immigrants have on tax revenues and government spending in the United States depends on the demographics and skills of the immigrants. Before the 1970 most of the immigrants that arrived in the United States were net contributors to the tax expenditure-system. These foreign workers were generally highly educated and skilled, young and single men that contributed more in taxes than used government services. In contrast, the inflow of immigrant workers since the 1970 has been characterized by low-educated and unskilled workers who use the welfare system more than natives. The fiscal burden that these low-skilled workers impose on the U.S. government substantially exceeds their tax contributions to the system.
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In the United States, the primary agency responsible for foreign exchange intervention is
A) the U.S. treasury. B) the Federal Reserve. C) the exchange stabilization fund. D) the IMF.
Foreign exchange risk is
A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk. B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value. C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets. D) active management of a floating exchange rate on the part of a country's government.