Reserves of member banks appear on the Fed's balance sheet as liabilities
a. True
b. False
Indicate whether the statement is true or false
True
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Why do firms pay dividends? It would appear that they are subject to double taxation, giving more incentive to eliminate them.
What will be an ideal response?
The immigrants most likely to go directly to the lands in the West, rather than be absorbed into the eastern city populations, were from
a. England and Scotland. b. Germany c. Ireland. d. France.
The figure below represents the U.S. market for steel imports from South Korea. The South Korean government provides an export subsidy of $25 per ton, and South Korean firms use the subsidy to reduce their export price to the United States to $375 per ton.
The change in national welfare in the United States when the South Korean government provides an export subsidy of $25 per ton is
A. + $375 million. B. + $4.125 billion. C. -$4.5 billion. D. - $3.75 billion.
Refer to the figure. Assuming this market is representative of the economy as a whole, a negative demand shock will most likely:
A. cause inflation.
B. increase unemployment.
C. lower prices but leave output unaffected.
D. reduce both prices and output.