The purchase of a capital asset adds to the demand for loanable funds only if that asset is a domestic one
a. True
b. False
Indicate whether the statement is true or false
False
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When determining value added, national income accounting systematically ignore
A) accounting profits. B) economic profits. C) accounting losses. D) the expected market value of unsold inventory.
Would the maximum loan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not
What will be an ideal response?
Which of the following is true of net taxes? a. The level of net taxes varies directly with the level of transfer payments. b. The level of net taxes varies inversely with the level of transfer payments. c. Net taxes must always be less than zero
d. Net taxes increase when income tax rates are reduced. e. Net taxes increase when income decreases.
The benefit to buyers of participating in a market is measured by
a. the price elasticity of demand. b. consumer surplus. c. the maximum amount that buyers are willing to pay for the good. d. the equilibrium price.