If fears of a terrorist attack are widespread and people lose faith in money, the economy could revert to a system of
a. cash and checks.
b. double-entry bookkeeping.
c. barter.
d. financial intermediaries.
c
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What is meant by the term "economic efficiency"?
What will be an ideal response?
According to the principle of subsidiarity, in which of the following areas should the authority for making decisions be taken from national governments and given to the EU?
A) Pollution of a trans-national waterway B) Limits on the hours retails stores are allowed to be open C) Highway traffic laws D) Recycling requirements on packaging E) All of the above.
If reserves in the banking system increase by $100, then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is
A) 0.01. B) 0.05. C) 0.15. D) 0.20.
The federal income tax is progressive because the tax rates increase at higher income levels
a. True b. False Indicate whether the statement is true or false