The sales tax is generally considered to be a regressive tax.
Answer the following statement true (T) or false (F)
True
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If the Fed buys government securities, then
A) the quantity of money is not changed, just its composition. B) new bank reserves are created. C) the quantity of money decreases. D) bank reserves are destroyed. E) banks' excess reserves decrease.
Consider the market for consumer loans. A legal ceiling set below the market-clearing interest rate would tend to
A) increase the quantity demanded for loans. B) decrease the quantity supplied of loans. C) create a shortage of loans. D) do all of the above. E) do none of the above.
A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff will cause
a. imports to fall from Q2 minus Q1 to Q4 minus Q3.
b. domestic producers to increase their production from Q1 to Q3.
c. domestic consumers to reduce their consumption from Q2 to Q4.
d. All of the above.