In the Open-Economy Macroeconomic Model,the Purchase of a Capital Asset

question 77

Multiple Choice

In the open-economy macroeconomic model,the purchase of a capital asset by domestic residents adds to the demand for loanable funds

• A)only if the asset is located at home.
• B)only if the asset is located abroad.
• C)whether the asset is located at home or abroad.
• D)None of the above is correct.

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Definitions:

Benefits-received Principle

The concept that the amount of tax an individual pays should be related to the level of benefits they receive from government services.

Hunting Licenses

Permits issued by a government or authorized entity allowing individuals to hunt wildlife during specified periods and under certain conditions.

Wildlife Stocking Programs

Initiatives aimed at replenishing or introducing species into natural habitats for conservation or recreational purposes.

Tax Shifting

The process whereby the economic burden of a tax is passed from one group to another, such as from producers to consumers.