When commercial banks borrow from other commercial banks, the immediate impact is that reserves in the banking system
A) increase.
B) decrease.
C) are unaffected.
D) first increase, then decrease.
E) first decrease, then increase.
C
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Tastes for perfect substitutes are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
The "ability-to-pay" principle of taxation is the normative idea that
A) an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals. B) two individuals earning the same income should have equal ability to pay, all else constant. C) each individual should voluntarily contribute according to her ability to pay taxes. D) progressive taxes are more equitable than regressive taxes.
Assume that in an effort to help consumers, the government decides to reduce the amount of taxes it imposes on sellers of gasoline, that is, sellers are required to pay the government a smaller fee for each gallon of gas they sell
In the market for gas, this would have the effect of causing an increase in the supply of gas and a decrease in equilibrium price. Indicate whether the statement is true or false
Unemployment that results from a mismatch of workers' abilities and skills with current requirements of employers is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.