When a person smokes a cigarette in his car and throws the butt out of the window, this is a(n)
A. marginal cost.
B. internal benefit.
C. external cost.
D. marginal personal benefit.
Answer: C
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Domestic investment – Private domestic savings – Public domestic savings = Trade _________.
a. level b. balance c. surplus d. deficit
The trends in the share of mandatory and discretionary spending suggest that the percentage attributable to
A. mandatory spending is rising but so is the percentage attributable to discretionary spending. B. mandatory spending is falling but so is the percentage attributable to discretionary spending. C. discretionary spending rose from the late-1960s through the middle-1990s, but has stabilized. D. mandatory spending rose from the late-1960s through the middle-1990s, stabilized for a few years, and then began to rise again.
The Fed sells $1 million in bonds to a bond dealer. The bond dealer's bank experiences
A. a decrease in assets of $1 million as its reserves decrease and a decrease in liabilities of $1 million as its deposits fall. B. an increase in assets of $1 million as its deposits fell by $1 million, and a decrease in liabilities as its reserves fell by $1 million. C. no change in assets or liabilities. D. a decrease in assets of $1 million as its reserves decrease and an increase in liabilities of $1 million as its deposits rise.
Discuss the effect leverage has on a bank’s profit.
What will be an ideal response?