Question
If a government defaults on the value of its debt by
3/4, this is the same as imposing a ____ tax on interest and repayment of the principal.Solution
I borrow 100 euros from you and promise to pay you back next year the principal and 10%. That means I owe you 110 euros next year. I now unilaterally declare that I will only honour 25 euros of debt to you. Next period I pay you 27.5 euros [25 + 1/4(10)]. That is the same amount as though announcing to you next period that I would tax your 110 euros 75% (i.e., you keep only .25*110=27.5)
Which one of the following is an animal-origin insecticide?
The mineral source of plant nutrient Boron whose deficiency leads to pollen sterility is
Which enzyme produced by nitrogen-fixing bacteria is responsible for converting atmospheric nitrogen into ammonia?
When is World Wetland Day celebrated?
Central Institute of Fisheries Technology is located at
The let-down of milk in cow is due to release of which of the following hormone?
Which systemic fungicide is used as seed treatment to control loose smut disease of wheat?
Transpiration ratio of which of the following plants is observed to be the lowest?
Which category includes crops like coriander, cumin, and carrot based on taxonomy?
What is the primary objective in the cotton ginning process?
