Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Figure 18.1Refer to Figure 18.1. Suppose that the Lorenz curve ran along the horizontal axis to 100% of families, then became vertical to 100% of income. This would mean that
A. the distribution of income is completely inequitable.
B. the distribution of income is equal.
C. only one family earned all the income.
D. the distribution of income is perfectly equitable.
Answer: C
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The non-bank public chooses among various financial assets in deciding what kind of liquidity it wants to hold. It thereby increases or decreases
A) the narrowly-defined money stock (M1). B) the reserves of commercial banks. C) the reserves commercial banks are required to hold. D) all of the above, at least potentially. E) none of the above, since only the Fed can alter the money supply.
In the schematic theory of economic policy, the demand for money is considered
A) a policy instrument. B) an exogenous nonpolicy variable. C) a structural relation. D) a target variable. E) an irrelevant side effect.
A rapid demographic transition should raise the saving rate
a. True b. False
A quota specifies the maximum amount of a good that is permitted into the country from abroad per unit of time.
Answer the following statement true (T) or false (F)