Author Question: At any given moment there is one exchange rate: a. for all the world's currencies. b. for ... (Read 59 times)

rlane42 · **on:** Jun 30, 2018

At any given moment there is one exchange rate:
a. for all the world's currencies.
b. for currencies in the free world.
c. between every pair of currencies.
d. established by the Federal Reserve System.

Question 2

What is the ability to pay principle? Does the U.S. federal income tax follow this principle or not? Explain your answer.

chjcharjto14 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

The ability to pay principle is simply that those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes. The federal income tax is a good example of this principle because the rich pay more taxes than the poor.