Which of the Following Is Correct

question 53

Multiple Choice

Which of the following is correct?

• A)capital flight from the United States decreases net capital outflow
• B)an increase in the government budget deficit creates no change in net capital outflow
• C)if the U.S.imposes a restriction on imports,net capital outflow increases
• D)None of the above is correct.

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Definitions:

Taxpayers

Individuals or entities obligated to pay taxes to governmental authorities.

Income Tax

A tax imposed by the government directly on individuals' or organizations' income.

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.

Economy

The system by which a country's money and goods are produced and used, encompassing production, distribution, and consumption.