James is a resident of the U.S. and has accrued capital gains on an asset. If James dies prior to the realization of capital gains, ________.
A. his heirs will have to pay the tax on gains
B. his heirs can sell the asset and the gains will be tax-free
C. his heirs will have to pay a death tax along with the capital-gains tax
D. his heirs will not be able to sell the asset
Answer: B
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Assume Bryce's budget constraint is represented by line B in the graph shown. Which of the following would cause Bryce's budget constraint to shift to A?
A. The price of books increased.
B. The price of books decreased.
C. The price of movie tickets increased.
D. The price of movie tickets decreased.
During a period of inflation, the Fed is likely to
a. sell government bonds to banks in order to reduce the amount of loanable funds in the market b. buy government bonds from banks in order to reduce the amount of loanable funds in the market c. raise taxes in order to reduce the money supply d. cut the legal reserve requirement in order to reduce the amount of excess reserves banks have to loan out e. cut the discount rate in order to increase the affordability of loanable funds
"Exotic" mortgages became popular in part because home prices were expected to
A. rise quickly. B. become increasingly unpredictable. C. fall precipitously. D. remain virtually constant.
For the equation of exchange to remain in balance
A. changes in P must equal the combined change in M and V. B. changes in P must equal changes in V. C. changes in Q must equal changes in M. D. the equation does not have to balance.