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Judy died and was survived by her husband, Jason, who received the following interests as a result of his wife?s death. Does Judy?s estate receive a marital deduction for them? Explain.
a. $400,000 of life insurance proceeds; Jason is the beneficiary; Judy held the incidents of own- ership.
b. Outright ownership of $700,000 of land held by Judy and Jason as joint tenants. Jason provided all the consideration to purchase the land.
Can protectionism cause trade deficits? Recall the model of U.S.-China trade presented in Chapter 6, in which the United States exports plastics to China and China exports apparel to the United States. Suppose that the Chinese government simply refused to allow any U.S. plastics to be imported into the country. Would that cause a U.S. trade deficit? Why or why not?
