________ states that if previously existing distortions exist, a distortionary tax may actually improve efficiency.

A. The principle of second best
B. The principle of neutrality
C. The rule of reverse distortion
D. The benefits-received principle

Answer: A

Economics

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Only the bank's best customers will get the prime rate

a. true b. false

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Which one of the following will shift the investment demand curve leftward?

a. A technological breakthrough. b. Lower tax rates. c. Optimistic business expectations. d. A lower rate of capacity utilization. e. None of these.

Economics