Author Question: The size of the underground economy would tend to decrease if the government of a country A) ... (Read 115 times)

dalyningkenk · **on:** Jun 29, 2018

The size of the underground economy would tend to decrease if the government of a country

A) increased income tax rates.
B) increased business taxes.
C) decreased government regulations on businesses.
D) made over-the-counter drugs illegal.

Question 2

Refer to Figure 19-7. Which of the following is true?

A) Indian exports to the United States are more expensive at exchange rates greater than .02/rupee than at the equilibrium exchange rate.
B) U.S. imports are more expensive at exchange rates greater than .02/rupee than at the equilibrium exchange rate.
C) To achieve an exchange rate greater than .02/rupee, the Reserve Bank of India must buy surplus dollars with rupees.
D) The rupee is overvalued at exchange rates less than .02/rupee.