If the Supply of Saving Is Not Perfectly Inelastic, Then

question 23

Multiple Choice

If the supply of saving is not perfectly inelastic, then substituting a value-added tax for an equal-yield general wealth tax will:

• A) decrease market equilibrium interest rates.
• B) increase the efficiency loss in labor markets.
• C) decrease the efficiency loss in labor markets.
• D) decrease efficiency in capital markets.
• E) both a and b

Describe the formation and effects of secondary pollutants.

Understand the chemical reactions involved in air pollution.

Recognize the importance of atmospheric layers in environmental science.

Understand strategies for pollution management and cleanup.

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Definitions:

Bond Discount Amortized

The process of gradually writing off the discount on bonds payable over the life of the bonds, affecting interest expense on the income statement.

Bond Premium Amortization

The process of gradually expensing the premium paid over the par value of a bond over its life.

Effective Yield

The total yield of a bond once all charges are factored in, expressed as an annual percentage.