Recessionary gaps are most likely to be accompanied by

In the long run, the exchange rate between two currencies is

A) fixed. B) influenced by purchasing power parity. C) undefined. D) constant. E) determined so that the current account balance equals zero.

The marginal tax rates on the richest Americans when Ronald Reagan was elected and when he left office were

a. 28 percent and 50 percent, respectively. b. 70 percent and 40 percent, respectively. c. 40 percent and 70 percent, respectively. d. 50 percent and 28 percent, respectively.