This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy ... (Read 129 times)

ssal

  • Hero Member
  • *****
  • Posts: 572
on: Jun 30, 2018
Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes income to _____, while under flexible exchange rates expansionary fiscal policy causes income to _____.
 
  a. increase; increase
  b. increase; remain unchanged
  c. increase; decrease
  d. remain unchanged; increase

Question 2

Inflation leads to bracket creep, which forces taxpayers to pay a larger percentage of their income in taxes, when
 
  (a) Changes in the real purchasing power of their income do not keep pace with inflation.
  (b) Changes in the real purchasing power of their income keep pace with inflation.
  (c) Income tax codes change quickly as inflation emerges, impacting real purchasing power.
  (d) Income tax codes increase without taxpayer knowledge, forcing them to pay higher taxes
  than anticipated.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

adf223

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

(a)


ssal

  • Member
  • Posts: 572
Reply 2 on: Jun 30, 2018
Excellent

raenoj

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Schematic of the Earth–Moon system (without a consistent scale) Schematic of the Earth–Moon system (without a consistent scale)
The nervous system. The nervous system.
A plastic mock-up of a Honda VTEC system that uses two different camshaft profiles: one for low ... A plastic mock-up of a Honda VTEC system that uses two different camshaft profiles: one for low ...
Example of a Regulatory System Example of a Regulatory System
Landsteiner's experiment demonstrating the exquisite specificity of the immune system. Landsteiner's experiment demonstrating the exquisite specificity of the immune system.
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Video: Automated external defibrillator (AED)

For a complete list of videos, visit our video library