Which one of the following statements about public debt is most accurate?
a. Because rich and poor people hold government bonds, they are equally affected by the debt.
b. Wealthy people are more likely to hold government bonds, and so they are less likely to be adversely affected by the debt
c. Wealthy people are less likely to hold government bonds, and so they are more likely to be adversely affected by the debt.
d. Poor people are more likely to hold government bonds, and so they are more likely to be adversely affected by the debt.
e. Poor people are less likely to hold government bonds, and so they are less likely to be adversely affected by the debt.
B
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If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6
Indicate whether the statement is true or false
As a result of the relatively low female-to-male wage ratio in early-1800s New England,
a. the supply of women willing to work in factories increased. b. the supply of women willing to work in farming declined. c. the wages of female farm labor rose. d. the North industrialized more quickly than the South. e. All of the above.
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. This commercial bank has excess reserves of:
A. $15,000. B. $27,000. C. $18,000. D. $32,000.
Suppose the central bank implements a monetary expansion that is not fully anticipated by financial markets. Given this information, we would expect
A) stock prices to rise. B) stock prices to fall. C) stock prices to remain unchanged. D) an ambiguous effect on stock prices. E) none of the above