A comprehensive retail sales tax is equivalent to a tax on income when _____
a. there is no deadweight loss from taxation
b. there is at least some investment in the economy
c. there is zero saving in the economy
d. the economy is at full employment
c
Economics
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Normally, we expect voters' preferences to exhibit a property called
a. transitivity. b. transversality. c. normality. d. universality.
Economics
Which of the following statements is correct?
a. The interest rate that is usually reported is the interest rate that has been corrected for inflation. b. The supply of, and demand for, loanable funds depend on the real (rather than nominal) interest rate. c. If the nominal interest rate has decreased and the real interest rate has also decreased, then the inflation rate must have decreased as well. d. All of the above are correct.
Economics