Households will choose to save more if
A) income is expected to decrease in the future.
B) current disposable income increases.
C) Both answers A and B are correct.
D) Neither answer A nor B is correct.
C
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The Commerce Bank of Beverly Hills has total deposits of $1,000,000 and total reserves of $220,000. The desired reserve ratio is 10 percent. The bank's excess reserves are
A) $22,000. B) $120,000. C) $100,000. D) $80,000. E) $1,000,000.
Goods and services that we buy from firms in other countries are called our
A) imports. B) exports. C) inputs. D) raw materials. E) obligations.
Discuss the impact of demand and supply changes on market equilibrium price and quantity. Express this graphically
The benefits principle of taxation can be used to argue that wealthy citizens should pay higher taxes than poorer ones on the basis that
a. police services are more frequently used in poor neighborhoods. b. the wealthy benefit more from services provided by government than the poor. c. the poor are more active in political processes. d. the poor receive welfare payments.