People who believe in the ability-to-pay principle would most likely favor ______.

Under a fixed exchange standard, if the domestic demand for foreign exchange increases

A) the central monetary authority must meet the demand out of its reserves. B) the central monetary authority must increase the supply of domestic money. C) the fixed exchange standard will breakdown. D) inflation will increase. E) the domestic currency must be depreciated.

The ability-to-pay principle states that _____

a. individuals should pay taxes in proportion to their ability to pay b. individuals should not move to localities where they cannot pay the taxes c. individuals should not use government programs unless they contribute something in taxation d. individuals should pay taxes only if they benefit