Q. Suppose that average household in a state consumes 800 gallons of gasoline per year. A 20-cent gasoline tax is introduced, coupled with a $160 annual tax rebate per household. Will household be better or worse off under new program?
Q. In lecture, we Suppose unrealistically that re is no tax on interest earnings. n Suppose that U.S. Begins introducing a tax on interest earnings from today. How will this tax policy affect current exchange rate?