Suppose the required reserve ratio is 20%. A $40 million cash deposit will, at most, allow an expansion of the money supply to
A. $20 million.
B. $80 million.
C. $200 million.
D. $800 million.
Answer: C
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The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?
A) country A B) country B C) country C D) country D
If an auto dealer wants to hire a salaried salesman but is afraid of facing the adverse selection problem, the principle can
a. Hire a salesman who has a reputation for working hard b. Monitor the salesman to prevent shirking c. All of the above d. None of the above
Which of the following statements about the public debt is TRUE?
A. It is equal to the budget deficit. B. It is a stock variable. C. It decreases when the government runs a budget deficit. D. all of these
Net taxes equal total taxes:
A. plus public saving minus private saving. B. minus public saving minus private saving. C. minus transfer payments plus government interest payments. D. minus transfer payments minus government interest payments.