The size of the underground economy would tend to decrease if the ...

[dalyningkenk]

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.

[patma1981]

Answer to Question 1

C

Answer to Question 2

A

[dalyningkenk]

Excellent

[kalskdjl1212]

TYSM