Why can economic growth cause political upheaval in a developing society?
a. Once people see that improvement is possible, they become bitter at their relative deprivation.
b. The newly rich resist the tax hikes needed for continued development.
c. The very poor typically organize a Marxist revolution.
d. The new middle class begins to demand a comprehensive welfare state.
a
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Because of NAFTA, an American business owner may be able to save money through which of the following?
a. by setting up a shell corporation in the Cayman Islands to avoid U.S. taxes b. by moving a manufacturing plant from the United States to Mexico, where labor is cheaper c. by purchasing cheap goods from China without paying taxes or tariffs d. by outsourcing customer service jobs to India e. by purchasing government-issued bonds to cover basic business expenses
According to the principle underlying fiscal policy, during inflation, fiscal policy should:
A. stimulate economic activity by decreasing taxes. B. curb economic activity by reducing government spending. C. let the forces of supply and demand operate on their own. D. expand the rate of growth of the money supply. E. use the easy-money policy.