Drawing on her account at Regional Bank, Samantha writes a check to Isabella, who deposits the check in her account at Local Bank. Once the check has cleared, which of the following will occur to the reserves of the banking system and the M1 money supply?
a. Bank reserves will increase; M1 will increase.
b. Bank reserves will increase; there will be no change in M1.
c. There will be no change in bank reserves; M1 will increase.
d. There will be no changes in either bank reserves or M1.
D
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The lower half of income earners pay ________ of federal income taxes.
A. 1% B. 14% C. 2% D. 38%
If a manufacturer and retailers have a resale price maintenance agreement, typically the manufacturer permits retailers to charge a resale price ________ the specified ________ price.
A) above; minimum B) below; maximum C) above; maximum D) below; minimum
Which of the following is a shortcoming of GDP?
a. GDP measures used goods and services. b. GDP includes changes in inventories. c. GDP includes the value of net exports. d. GDP does not make an allowance for leisure time.
If the Federal Reserve buys government bonds from the public,
A. Demand deposits will decrease. B. Bank reserves will not change. C. The money supply will contract. D. Banks will be able to make additional loans.