In the Equilibrium Approach,changes in Exchange Rates Occur Because of Changes

question 4

True/False

In the equilibrium approach,changes in exchange rates occur because of changes in tastes or technology and are part of the adjustment to a shock to the world economy.

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Definitions:

Income

The money received by an individual or business in exchange for providing a good or service or through investing capital.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income, used in progressive tax systems to ensure higher incomes are taxed at higher rates.

Federal Income Tax

The United States federal government imposes a financial charge on the yearly revenues of individuals, corporations, trusts, and other legal entities.

Marginal Tax Rate

The tax rate that applies to the next additional increment of a taxpayer's taxable income.