When a person pays a loan back to a bank by writing a check for the amount due, demand deposits decline and the money supply is reduced
a. True
b. False
Indicate whether the statement is true or false
True
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All of the following were classical economists EXCEPT
A) Adam Smith B) A. C. Pigou C) David Ricardo D) John Maynard Keynes.
. A subsidy:
A. All of these statements are true. B. is a requirement that the government pay an extra amount to producers or consumers of a good. C. is used by governments to encourage the production and consumption of a particular good or service. D. is used by governments as an alternative to price controls to benefit certain groups without generating a shortage or a surplus.
Whether an excise tax is imposed on a demander or supplier is irrelevant because
a. in either case the price that the demander has to pay will decrease; while the price the supplier receives will increase b. in either case the price that the demander has to pay will increase; while the price the supplier receives will decrease c. either situation will create excess demand d. either situation will create excess supply e. none of these are correct
One plausible explanation for the large amount of U.S. currency outstanding is that many dollars are held abroad
a. True b. False Indicate whether the statement is true or false