Dividends are payments made to bondholders.
Answer the following statement true (T) or false (F)
False
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If the minimum wage is set above the equilibrium wage, after taking into account the resources lost in job search, the firms' surplus ________ and the workers' surplus ________
A) increases; increases B) increases; decreases. C) decreases; increases D) decreases; decreases E) does not change; decreases
Governments sometimes subsidize domestic industries. When this occurs
A) the governments will not impose tariffs. B) the subsidized sell less in international markets because it is more profitable to sell at home. C) the subsidized industries have an advantage on international markets relative to non-subsidized firms. For this reason, other countries often impose tariffs on the subsidized imports. D) the subsidized industries have an advantage on international markets relative to nonsubsidized firms. However, this is not an argument for imposing tariffs and tariffs would violate international agreements.
Banks can expand the nation’s money supply by
a) issuing credit cards b) paying interest on deposits c) lending out excess reserves d) cashing checks e) selling life insurance
Assume the marginal propensity to consume is 0.8. If consumer spending rises by $20 billion, then total income through the multiplier effect will:
a. Will not change b. Decrease by $100 billion c. Increase by $100 billion d. Increase by $10 billion