The United Nations' goal of reducing the global rate of extreme poverty to 15 percent by 2015 is known as the
A. United Nations' Poverty Goal.
B. World Poverty Goal.
C. Global Poverty Goal.
D. Millennium Poverty Goal.
Answer: D
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Assume equilibrium real GDP per year is equal to full-employment real GDP. Which of the following will cause a recessionary gap?
A) a discovery of a new raw material B) a reduction in aggregate demand C) a temporary reduction in the price of oil D) an increase in aggregate demand
Which of the following correctly describes the system of fractional reserve banking?
a. Banks keep a fraction of their loans with other banks to maintain the quality of their loan portfolio. b. Banks can loan out the entire deposits but a small fraction of their own profits must be kept as reserve in bank vaults. c. Banks reserves amount to only a fraction of funds on deposit with the bank. d. The federal government insures only a fraction of the deposits at most banks.
People might withdraw money from interest-bearing accounts,
a. making the interest rate fall, if there is a surplus in the money market. b. making the interest rate rise, if there is a surplus in the money market. c. making the interest rate fall, if there is a shortage in the money market. d. making the interest rate rise, if there is a shortage in the money market.
Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. At an income level of $80,000, the average tax rate is
A. 2%. B. 5%. C. 15%. D. 20%.