Author Question: The ability to pay principle suggests that: a. traditional exemptions should be removed since they ... (Read 71 times)

jhjkgdfhk · **on:** Jun 30, 2018

The ability to pay principle suggests that:
a. traditional exemptions should be removed since they are more frequently used by people with ability to pay more taxes.
b. people with different levels of income should be treated in the same manner.
c. individuals receiving the benefits should be those who pay for them.
d. those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.

Question 2

One of the advantages of floating exchange rates is that:
a. consumers always know how much imported goods cost.
b. businesses always know, in advance, what future exchange rates will be.
c. countries are free to pursue their own macroeconomic policies without maintaining exchange rates.
d. countries cannot act independently and must thus coordinate their macroeconomic policies.
e. the global interest rate tends to decline to the lowest possible level.