In the open-economy macroeconomic model, if a country's interest rate rises, its net capital outflow
a. rises and the real exchange rate rises.
b. falls and the real exchange rate falls.
c. rises and the real exchange rate falls.
d. falls and the real exchange rate rises.
d
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The notion that equally situated individuals should be taxed equally is referred to as
a. horizontal equity. b. vertical equity. c. the benefits principle. d. the Gini principle.
One of the widely-acknowledged problems with the consumer price index (CPI) as a measure of the cost of living is that the CPI
a. fails to account for consumer spending on housing. b. accounts only for consumer spending on food, clothing, and energy. c. fails to account for the fact that consumers spend larger percentages of their incomes on some goods and smaller percentages of their incomes on other goods. d. fails to account for the introduction of new goods.