Economic depreciation is
A. the change in the distribution of real income induced by a tax.
B. the extent to which an asset decreases in value during a period of time.
C. the money value of the net increase in an individual's power to consume during a period.
D. a subtraction from tax liability (as opposed to a subtraction from taxable income).
B. the extent to which an asset decreases in value during a period of time.
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In August 2007, Sun Trust Bank has $83 million in loans and $114 million in M1 deposits. If Sun Trust is holding $4 million in reserves, the bank's reserve ratio is
A) $31 million. B) 4.8 percent C) 3.5 percent. D) 72.8 percent.
If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?
a. -$300 million. b. -$200 million. c. -$100 million. d. -$50 million.
The term "socialism" refers to which of the following?
a. A religion centered on community interaction. b. An economic system characterized by private ownership of resources, and decentralized market allocation. c. An economic system characterized by government ownership of resources and centralized allocation. d. None of the above answers are correct.