Taxes and subsidies can be used to correct market failure
Indicate whether the statement is true or false
T
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Assuming a reserve ratio of 10 percent, if a bank receives $100,000 in deposits how much can the bank loan out?
A) $10,000 B) $90,000 C) $100,000 D) $110,000
The consumption function will shift for all of the following reasons except:
a. a change in a household's real assets. b. a change in interest rates. c. expectations of price changes. d. changes in a household's disposable incomes. e. changes in taxation policy.
Government programs such as Medicare substantially subsidize health care purchases by some consumers in the U.S. economy. Who benefits from these subsidies? How do they affect the price of health care? If you are not a recipient of this program, are you made better or worse off by the subsidy? Explain
If C = 900 + 0.3Y, then autonomous expenditure is:
(a) 900. (b) 300. (c) 1200. (d) None of the above.