In 2001 and 2002, the Bush administration ________ personal and business taxes, which should cause AS to ________.
A. increased; decrease
B. decreased; decrease
C. decreased; increase
D. increased; increase
Answer: C
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Requiring commercial banks to hold reserves equal to some fraction of their deposit liabilities
A) acts as a constraint on bank lending. B) is an alternative for banks that choose not to use the gold standard. C) is without significance since banks are not required to meet their liabilities on demand by depositors. D) prevents runs on banks by depositors who fear that the banks may not have assets equal to their liabilities. E) really has no effect on the monetary system today.
A budget constraint is:
A. a line that is composed of the additional utility gained from consuming possible combinations of goods and services that a consumer can buy with his or her income. B. a line that is composed of all the possible combinations of goods and services that a consumer can buy with his or her income. C. a line that is composed of all the possible combinations of goods and services that maximize a consumer's total utility. D. a line that is composed of the total utility gained from consuming all possible combinations of goods and services that a consumer can buy with his or her income.
Savings plus consumption equals disposable income
A. all of the time B. most of the time C. rarely D. never
Speculating in a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.
Answer the following statement true (T) or false (F)