Suppose that Mr. Chopp withdraws $500 from his checking account. If the reserve requirement is 5 percent, what will be the maximum potential change in the money supply forthcoming from Mr. Chopp's transaction?
a. $10,000
b. $500
c. $0
d. -$500
e. -$10,000
e
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Draw a saving—investment diagram to show how each of the following changes shifts the IS curve
(a) Future income rises. (b) The future marginal productivity of capital increases. (c) Government purchases decrease temporarily. (d) The effective corporate tax rate increases.
Tax avoidance is
A. illegal in the United States. B. changing your behavior so as to reduce your tax liability. C. the same as tax evasion. D. a minor source of concern in the United States.
The OFCCP must receive a sworn complaint from an individual before it can take action
Indicate whether the statement is true or false
Which of the following statements is not correct?
a. In the long run, there are no fixed costs. b. Marginal cost is independent of fixed costs. c. Economies of scale is a short-run concept. d. Diminishing marginal product explains increasing marginal cost.