The major assets and liabilities of a bank are
a. demand deposits and reserves, respectively
b. demand deposits and gold, respectively
c. reserves and demand deposits, respectively
d. reserves and excess reserves, respectively
e. demand deposits and excess reserves, respectively
C
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Refer to Figure 16-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) decrease the money supply B) increase interest rates C) increase government spending D) increase taxes
Refer to the above figure. Excess quantity demanded will exist when
A) the price is between $0 and $6. B) the price equals $6. C) the price equals $10. D) quantity demanded equals 3.
The principle that people should pay taxes based on the benefits they receive from government services is called the
a. pay principle. b. tax-benefit principle. c. government services principle. d. benefits principle.
If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income is
A. greater than his total income. B. equal to his in-kind income plus his wages. C. less than his total income. D. the same as his total income.