Unformatted text preview: Use the ﬁgtne below fortne following questiorn. F ﬁgure 26-]
Interest Intranet mm
Rate 3'“ For: 5 m 5'"
Sm 5nd: 5
D D ”new
Hines ﬁnds ﬁnds.
Grail 1 Graph 2 suaph a 45. Refer to Figure 26-1. 1Which oftbe graphs in the ﬁgure above shows the eﬂ’ects ofinstituting a national sales tax
and simultaneously lowering the income tax rate?
a. graph 1
h. graph 3 c. graph 2
d. None of the above are correct. 46. Recently there have been violentprotests against the 1|World Bank and the World Trade Organization The
protesters argue that these institutions promote free trade and also encourage corporations in rich countries to
invest in poor countries. The protesters contend that these practices make Iieh oounliies richer andpoorcolmlriea
poorer. An economist would
a. disagree with theprotesters about ﬁ'ee trade, hutwould agree with theproteaters about
corporate investment. h. agree with the protesters. c. disagree with theprotestershecause these practioes will help- makebothliohandpoor
countries richer. d. disagree with the protesters about corporate investment, but would agree with the
protesters about free trade. 4?. Ban]: of Canada does all except which ofthe following?
act as a lender of last resort
convert cturency into gold conduct monetary policy
does all of the above. F'PF‘F 48. Whiehof’die following does the level ofreal GDP measure?
a. total real income
c. the stande of living
:1 All ofthe above are correct. ...
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