If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. C
B. NX
C. G
D. A change to the income tax rate will not affect any of these components.
A. C
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Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) three B) nine C) ten D) eleven
If a technological breakthrough reduces input quantities needed to produce some item,
A. cost of production will be increased. B. the price of the product will rise. C. the price of the product will fall. D. quantity demanded of the product will fall.
Which of the following will reduce the risk of equity (stock) investments?
A) The purchase of shares of a mutual fund that holds the stocks of many diverse corporations. B) All of the above. C) The purchase of shares in firms doing business in a wider variety of industries and markets. D) The purchasing and holding of equities over a lengthy period of time.
A person who chooses not to be in the labor force reveals that
A. either leisure or the value of nonpaid labor is worth zero to him. B. his potential product in the market is zero. C. either leisure or the value of nonpaid labor is worth more to him than the value that society places on his potential product in the market. D. either leisure or the value of nonpaid labor is worth less to him than the value that society places on his potential product in the market.