The Federal Reserve reports that it has coins valued at $10 billion, bank reserves at the Fed of $15 billion, gold valued at $10 billion, Federal Reserve notes of $400 billion, and U.S. government securities of $300 billion
What is the size of the monetary base?
The monetary base is the sum of coins, Federal Reserve notes, and banks' reserves at the Federal Reserve. Therefore the monetary base equals $10 billion + $400 billion + $15 billion = $425 billion.
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If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent, then the elasticity of demand is
A) 0. B) 1. C) indeterminate. D) 5. E) 25.
Changes in government spending and tax revenues for the purpose of achieving a full-employment and noninflationary level of domestic output is called:
a. Industrial policy b. Trade policy c. Fiscal policy d. Monetary policy
An investment grows from $2,000 to $2,750 over the period of 10 years. What average annual growth rate will produce this result?
What will be an ideal response?
"It would be an undue hardship to require people whose income is below $15,000 per year to pay income taxes." This statement reflects which of the following principles for a tax?
A. benefits-received B. inexpensive-to-collect C. ability-to-pay D. fairness of contribution