If you were to face a marginal tax rate of 15 percent, how much would your tax bill increase when your income increased by $2,000?
A) $30
B) $300
C) $450
D) $600
B
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The economy's Current Account measures primarily
a. sources and uses of current income b. income and outflow of payments for goods and services c. tax receipts and government spending d. changes in foreign exchange holdings e. none of the above
After watching a movie, Alan chooses not to watch a second and goes for a walk instead. Economists could explain his choices using the concept of:
A. budget constraints. B. diminishing marginal utility. C. income effect. D. substitution effect.
Bank accounts and bonds are examples of money-fixed assets
a. True b. False Indicate whether the statement is true or false
Bank of the Gulf has a required reserve ratio of 10 percent. It receives $180,000 in new deposits and then loans the excess reserves from this deposit to Kayla, who is building a new greenhouse. Kayla deposits the money into her checking account at Vulcan Bank until she needs it. How much money has Bank of the Gulf created?
a. $162,000 b. $18,000 c. $324,000 d. $180,000