Money is "created" when
A. a depositor deposits money at the bank.
B. people use money to pay for stuff they buy from one another.
C. someone lends money to a friend or a family member.
D. a bank grants a loan to a customer.
Answer: D
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Which of the following items will be included in official U.S. GDP statistics?
A. Robert paying Ted for a haircut in Chicago. B. Money spent to clean up a local toxic waste site in Ohio. C. The dollar value of the annoyance felt by local citizens living near a noisy airport in Georgia. D. Revenue generated by illegal marijuana growers in Oregon. E. Revenue generated by legal medical marijuana sales in California. F. Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas.
"As the economy moves upward along its aggregate supply curve, the economy also moves upward along its short-run Phillips curve." Is the previous statement correct or incorrect? Briefly explain your answer
What will be an ideal response?
Which of the following U.S. Treasury securities represents ownership of the national debt?
a. Bonds owned by the banks and insurance companies. b. Bonds owned by private individuals. c. Bonds owned by foreigners. d. All of these.
The percentage of families with incomes below the poverty line
a. is defined as the 10 percent of U.S.households with the lowest incomes. b. is known as the poverty rate. c. is known as the unemployment rate. d. rises as the general income level rises.