How is tax incidence important in tax policy in developing countries?
What will be an ideal response?
Incidence is the extent to which the burden of a tax is born by the activity taxed. To the extent that substitution is possible, an activity will be abandoned when taxed, and revenue will not be collected. The answer should provide examples of this.
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In the short run, if the Fed wants to raise the federal funds rate, it
A) instructs large commercial banks to sell government securities in the open market. B) instructs the New York Fed to buy government securities in the open market. C) instructs the New York Fed to sell government securities in the foreign exchange market. D) instructs the New York Fed to sell government securities in the open market. E) tells large commercial banks to raise their interest rates.
Assumptions that underlie the Resource-based View include
a. Resource heterogeneity b. Resource immobility c. Barriers to entry d. Both a and b