Suppose you borrow $1,000 to purchase a car. Which of the following correctly represents the changes in your personal balance sheet after the bank lends the money, but before you spend it?
a. Assets: loan, +$1,000 . Liabilities and net worth: checking deposit, +$1,000
b. Assets: loan, -$1,000 . checking deposit, +$1,000 . Liabilities and net worth: no change
c. Assets: loan, +$1,000 . checking deposit, -$1,000 . Liabilities and net worth: no change
d. Assets: checking deposit, +$1,000 . Liabilities and net worth: loan, +$1,000
e. Assets: checking deposit, +$1,000 . Liabilities and net worth: loan, -$1,000
d
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If a union successfully restricts the supply of labor to the firm but the union has no effect on the demand for labor, then the
A) wage increases and there is no change in employment. B) wage increases and employment increases. C) wage increases and employment decreases. D) wage increases and there is an unambiguous effect on employment.
How do economic profits and losses allocate resources in an economy?
What will be an ideal response?
Which statement(s) are most likely correct about supply?
a. A rise in price almost always leads to an increase in the quantity supplied of that good. b. A rise in price almost always leads to a decrease in the quantity supplied of that good. c. A fall in price almost always lead to an increase the quantity supplied. d. A rise in price almost always leader to an increase in the quantity demanded of that good.
If a supplier faces a perfectly horizontal demand curve and sets his price slightly higher than the demand curve itself, he can expect
a. no change in his total revenues b. everyone to begin buying his product c. a complete loss of revenues d. a new demand curve e. a relative increase in income