Which of the following is correct?
A. Both the granting and repaying of bank loans expand the aggregate money supply.
B. Granting and repaying bank loans do not affect the money supply.
C. Granting a bank loan destroys money; repaying a bank loan creates money.
D. Granting a bank loan creates money; repaying a bank loan destroys money.
D. Granting a bank loan creates money; repaying a bank loan destroys money.
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Taxable income is
A. Adjusted Gross Income - Exemptions. B. Adjusted Gross Income - Exemptions - Deductions - Credits. C. Adjusted Gross Income - Exemptions - Deductions. D. Adjusted Gross Income - Exemptions - Deductions - Credits - Taxes Withheld.
An economic principle that explains why countries produce different goods and services is
A) trade as a percentage of GDP. B) absolute advantage. C) NAFTA. D) comparative advantage.
Yield management is the practice of
A) forecasting competitors' responses to price changes. B) using information technology to find the best interest rate. C) determining production functions to minimize production costs. D) using buyer data to rapidly adjust prices.
Figure 11-2
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Which graph in Figure 11-2 best reflects a Keynesian’s view of the impact of raising taxes on saving?
A. 1 B. 2 C. 3 D. 4