Of the following, the riskiest assets held by commercial banks are
A) reserves.
B) U.S. government bonds.
C) U.S. government Treasury bills.
D) loans.
D
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If gross investment for a year was $120 billion and net investment was $65 billion, then in that year the country's capital stock ________.
A. increased by $65 billion B. increased by $55 billion C. decreased by $55 billion D. may have either increased or decreased
How do Pigouvian taxes help in reducing pollution?
What will be an ideal response?
Reducing the marginal tax rate on income will
A) raise the return to entrepreneurship and encourage the opening of new businesses. B) increase the after-tax return on saving, and encourage saving. C) reduce the tax wedge faced by workers and increase labor supplied. D) All of the above are correct.
From an economic point of view, the idea of establishing a government to further the will of the majority _____
a. means that marginal political costs and marginal political benefits are being equalized b. makes sense because the majority could exploit the minority c. does not make any sense because the majority could exploit the minority d. would lead to a large transitional gains trap