Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in
A) oil prices.
B) business taxes.
C) income tax rates.
D) investment spending.
Answer: D
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Suppose that businesses in Japan reduce their spending on plant and equipment. What will be the effect on spending on plant and equipment by businesses in the United States?
What will be an ideal response?
The federal corporate income tax rate in 2003 was about _____ for most corporations
a. 28 percent b. 35 percent c. 42 percent d. 47 percent
A market in which a price-controlled good is sold at an illegally high price is known as
A) a flooring market. B) a ceiling market. C) a black market. D) a supermarket.
Suppose you found $2,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 25 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves
a. $2,000; $8,000 b. $2,000; $6,000 c. $1,500; $8,000 d. $1,500; $6,000