A valid argument against redistributing income to achieve complete equality is that:
a. income equality would destroy the social cohesiveness that exists among different income groupings
b. this would eliminate the monetary incentives to work and produce.
c. the cost of obtaining the equality would be so deflationary as to promote economic instability.
d. income equality would imply class segregation based on factors such as sex or race, since income would be constant.
b
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If the government were to remove rent controls from the New York City rental market, then
A) all would be harmony. B) the price paid by buyers would decrease and the quantity of rental units will decrease. C) the price received by sellers would increase and the quantity of rental units will increase. D) the price received by sellers would decrease and the quantity of rental units will decrease.
If a new cash deposit creates excess reserves of $5,000 and the required reserve ratio is 10 percent, the banking system can increase the money supply by a maximum of
a. $50,000. b. $500. c. $5,000. d. $4,500.
The short-run equilibrium of the firm under monopolistic competition has excess capacity.
Answer the following statement true (T) or false (F)
When a $1,000 check written on the Chase Bank is deposited in an account at the Bank of America the:
a. Liabilities of Chase rise by $1,000. b. Reserves of Chase increase by $1,000. c. Liabilities of the Bank of America fall by $1,000. d. Reserves of the Bank of America increase by $1,000. e. All the above.