In a market system, employees and suppliers:
A. are usually shielded from risk, but at the cost of not sharing in the profits of the firm.
B. are usually shielded from risk and share in the profits of the firm.
C. are generally subject to as much risk as firm owners but get to share in the profits.
D. bear as much risk as firm owners but don't get to share in the profits.
Answer: A
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Exhibit 15-7 Lower Walloon National Bank Assets Liabilities Reserves$10,000 Checkable deposits$10,000 In Exhibit 15-7, if the required reserve ratio is 20 percent for all banks, and every bank in the banking system loans out all of its excess reserves. Then a $10,000 deposit from Mr. Brown in checkable deposits could create for the entire banking system:
A. $8,000 worth of new money. B. $2,000 worth of new money. C. $10,000 worth of new money. D. $40,000 worth of new money.
Low-income families consume proportionately more of which of the following kinds of goods?
a. Normal goods b. Inferior goods c. Luxury goods d. Substitute goods
When the Fed buys government bonds,
a. the money supply increases and the federal funds rate increases. b. the money supply increases and the federal funds rate decreases. c. the money supply decreases and the federal funds rate increases. d. the money supply decreases and the federal funds rate decreases.
When the Federal government uses taxation and spending actions to stimulate the economy it is conducting:
a. Employment policy b. Monetary policy c. Fiscal policy d. Incomes policy