A decrease in the effective tax rate on capital would cause the IS curve to
A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
A
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The decline in the value of the yen in 2014 and 2015 occurred as a result of the Japanese central bank, the Bank of Japan, following an expansionary monetary policy
Investors expected that the result would be lower nominal Japanese interest rates and a higher inflation rate. In response, investors ________, causing the value of the yen to decline against the dollar. A) bought Japanese yen and sold U.S. dollars B) bought Japanese yen and bought U.S. dollars C) sold Japanese yen and bought U.S. dollars D) sold Japanese yen and sold U.S. dollars
Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by
A) regulators' desire to escape blame for poor performance, leading to a perverse strategy of "bureaucratic gambling." B) regulators' incentives to accede to pressures imposed by politicians, who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors. C) Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans. D) politicians strong incentives to act in their own interests rather than the interests of the taxpayers.