An example of ad valorem taxation is
A) a tax on luxury items.
B) the corporate income tax.
C) the personal income tax.
D) the Social Security tax.
Answer: A
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Explain the impact on the Fed's balance sheet from a $10 million open market purchase of U.S. Treasury Securities. Be sure to identify which categories of assets and liabilities change and by what amounts.
What will be an ideal response?
The demand for factor inputs:
A. is generally constant across most factor markets. B. depends upon the markets for the goods that they are used to produce. C. is independent of how much they contribute to the value of the end product. D. is referred to as imputed demand.
The larger is the reserve ratio, the:
A. smaller is the money multiplier, and the less money will be created in the economy. B. larger is the money multiplier, and the more money will be created in the economy. C. larger is the money multiplier, and the less money will be created in the economy. D. smaller is the money multiplier, and the more money will be created in the economy.
Suppose the nominal interest rate is 10 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 6 percent. At the end of the year, you have earned:
A. a real rate of return of 4 percent. B. a nominal increase in your savings of $100. C. an increase in your purchasing power. D. All of these statements are true.