When the Fed raises the required reserve ratio, then the:
a. ability of banks to make loans is restricted.
b. ability of banks to make loans is enhanced.
c. ability of banks to make loans is unaffected.
d. interest rate that banks pay to the Fed to borrow money is increased.
e. interest rate that banks pay to other banks to borrow money is increased.
a
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A government-set price floor on a product
A. is intended to benefit the buyers of the product. B. will attract more resources towards the production of the product. C. does not interfere with the rationing function of price in a market system. D. will drive resources away from the production of the product.
Refer to the scenario above. If they are the only bidders in the auction and each of them uses his optimal strategy, who will win?
A) Tom B) Bill C) Jeff D) Roger
Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a
A) regressive income tax. B) negative income tax. C) progressive income tax. D) proportional income tax.
Use the following graph to answer the question below.
If the price decreases from P3 to P2, then the total revenue will lose areas
A. B + E, but it will gain areas H + I. B. E + F + G but it will gain areas H + I + J. C. A + B + C + D, but it will gain areas E + F + G. D. H + I, but it will gain areas A + B + C.