The Fed conducts an open market sale of Treasury bills of $5 million. If the required reserve ratio is 0.20, what change in the money supply can be expected using the oversimplified money multiplier?
a. $25 million
b. $5 million
c. 0
d. ?$5 million
e. ?$25 million
e
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Consumption taxes are generally viewed as
A. regressive. B. progressive. C. simple to calculate. D. multiplicative.
C = $40 million + 0.6(1 - 0.2)Y I = $35 million G = $31 million NX = -$6 million Based on the above data, the equilibrium level of GDP is
A) $113.6 million. B) $192.3 million. C) $208.3 million. D) $833.3 million.
Which of the following policies would increase the growth rate of an economy in the endogenous growth model with human capital?
A) mandatory schooling. B) minimum wages. C) redistributive taxation. D) lump-sum taxation.
A change in the distribution of income which leaves total income constant will not shift the market demand curve for a product if
a. everyone has an income elasticity of demand of zero for the product. b. everyone has the same income elasticity of demand for the product. c. individuals have differing income elasticities for the product, but the average income elasticity for income gainers is equal to the average income elasticity for income losers. d. any of the above conditions occur.