The tax code in the United States allows for the deductibility of mortgage interest, but not for interest on credit cards. Why is this difference allowed to exist?
What will be an ideal response?
Increasing home ownership is seen as increasing private investment, whereas credit cards are
viewed as consumption mechanisms.
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You are in the business of producing and selling hamburgers, french fries, pizza, and ice cream. The mayor plans to impose a tax on one of these products
Based on the elasticities in the above table, as a profit-minded business person who seeks to avoid taxes whenever possible, which good would you least like to have taxed? A) hamburgers B) pizza C) French fries D) ice cream
The liabilities side of a central bank's accounts consists of
A) deposits held by private banks. B) currency in circulation. C) deposits held by private banks and currency in circulation. D) deposits held by foreign banks, domestic assets, and currency in circulation. E) foreign assets and domestic assets.