Personal income and payroll taxes are the largest sources of revenue for the federal government.

The Articles of Confederation and Perpetual Union (1781) adequately addressed the free-rider problems by setting up a tax system that required all states to share the costs of providing national defense, protecting private property rights, regulating

commerce with other countries and across states and upholding a system of laws. Indicate whether the statement is true or false

Economists have long pondered the reasons why people hold money. Some reasons seem to be more important than others. Perhaps not among the most important but still a reason why people demand money is the precautionary motive. This precautionary demand for money refers to the demand

a. to satisfy everyday transactions b. for investment purposes c. for speculative purposes such as having money available to take advantage of stock purchases d. to protect against inflation e. to cover unexpected events