Which of the following are characteristics of market based regulations?
A) regulatory tripwires
B) monitoring the value of a bank's subordinated debt instruments
C) Market traders must have good information about depository institution risk.
D) all of the above
Question 2 - In 19957, tax revenue as a percent of GDP
(a) was roughly equal between developing and developed countries.
(b) was a few percentage points higher for developed than for developing countries.
(c) was a few percentage points lower for developed than for developing countries.
(d) was much higher (approximately double) for developed countries than for developing countries.
(e) was much higher (approximately double) for developing countries than for developed countries.
Question 3 - When it comes to the composition of tax revenues from different sources,
(a) developing countries derive the largest portion of their revenue from income taxes and developed countries from consumption taxes.
(b) developing countries derive the largest portion of their revenue from consumption taxes and developed countries from income taxes.
(c) both developing countries and developed countries derive the largest portion of their revenue from income taxes.
(d) both developing countries and developed countries derive the largest portion of their revenue from consumption taxes.
Question 4 - Assume a closed economy. Suppose the incremental capital-output ratio is 3, and the depreciation rate is 4.
Using the Harrod-Domar growth equation, if the savings rate is 9, what will be the rate of growth? What would the savings rate have to be to achieve 5 growth?
Question 5 - Which of the following is an objective of macroeconomic stabilization?
(a) eliminating current account deficits.
(b) controlling inflation.
(c) restoring fiscal balance.
(d) all of the above.
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