If an individual moves money from a small-denomination time deposit to a demand deposit account
A) M1 increases and M2 stays the same.
B) M1 stays the same and M2 increases.
C) M1 stays the same and M2 stays the same.
D) M1 increases and M2 decreases.
A
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Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10 percent, 20 percent, and 30 percent respectively. Which tax structure is this an example of?
A. Proportional tax B. Progressive tax C. Regressive tax D. Digressive tax
In monopolistic competition, the entry of new firms
A) shifts existing firms' demand curves rightward. B) shifts existing firms' demand curves leftward. C) only results in a movement along the existing firms' demand curves. D) has no effect on the existing firms' demand curves. E) shifts existing firms' supply curves rightward.
Which of the following is not a possible source of last-minute reserves for a private bank?
A. Selling bonds. B. Borrowing reserves from other banks. C. Raising the discount rate. D. Borrowing reserves from the Federal Reserve System.
Which of the following will not cause the marginal revenue product of labor curve for a firm to shift?
A) an increase in the productivity of workers B) an increase in demand for the product C) a decrease in the price of the product D) an increase in the wage rate