Explain the concept of an accounting identity
What will be an ideal response?
Two variables are related by an accounting identity when the two variables are mathematically identical.
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An effective program used to fight transient poverty is:
A. health insurance. B. job training. C. unemployment insurance. D. All of these are effective at fighting transient poverty.
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. But, if the rate of inflation was anticipated to be 4 percent, the bank would most likely charge the firm an annual interest rate of:
A. 10 percent. B. 2 percent. C. 6 percent. D. 4 percent.
The smallest single component of M1 is:
A. demand deposits. B. savings account balances. C. other checkable deposits. D. traveler's checks.
What is marginal benefit? Which curve is also referred to as a marginal benefit curve?
What will be an ideal response?