Although Writing Is a Personal Process, You Must Be Sure

question 33

True/False

Although writing is a personal process, you must be sure to answer the question that's being asked in a paper assignment.

Understand the administrative burden of taxes and its implications for taxpayers and the economy.

Identify the potential benefits of shifting the basis of taxation from income to consumption or other bases.

Understand the concepts of marginal and average tax rates.

Identify the types of taxes and their characteristics.

---

Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, accounting for its current market price, face value, interest payments, and time to maturity.

Annual Coupon

The yearly interest payment made to bondholders, typically expressed as a percentage of the bond's face value.

Par Value

The nominal or face value of a stock or bond. The par value of a bond generally represents the amount of money that the firm borrows and promises to repay at some future date. The par value of a bond is often $1,000 but can be $5,000 or more.

Fiscal Policy

The use of government purchases, transfer payments, taxes, and borrowing to influence economy-wide variables such as inflation, employment, and economic growth.