A commercial bank buys a $50,000 government security from a securities dealer. The bank pays the dealer by increasing the dealer's checkable deposit balance by $50,000. The money supply has:
A. Not been affected
B. Decreased by $50,000
C. Increased by $50,000
D. Increased by $50,000 multiplied by the reserve ratio
C. Increased by $50,000
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A primary criticism of preferential tax treatment of dividends and capital gains is:
A) there is not a double taxation of dividends B) it adversely affects the distribution of after-tax income C) there is no locked-in effect resulting from taxation of capital gains D) it does not have any impact on efficiency
Which of the following statements about trade is false?
a. Trade increases competition. b. With trade, one country wins and one country loses. c. Bulgaria can benefit, potentially, from trade with any other country. d. Trade allows people to buy a greater variety of goods and services at lower cost.
Tom Atoe grows fruits and vegetables for home consumption. This activity is:
a) excluded from GDP in order to avoid double counting. B) excluded from GDP because an intermediate good is involved. c) productive but is excluded from GDP because no market transaction occurs. d) included in GDP because it reflects production.
Answer the following statement(s) true (T) or false (F)
1. Most societies share the same three major macroeconomic goals. 2. News of changes in unemployment figures has little effect on the stock market. 3. Unemployment begins to fall as soon as a recession ends. 4. The U.S. Department of Labor considers discouraged workers unemployed. 5. The unemployment rate varies between men and women.