Assume the required reserve ratio is 10 percent and the FOMC orders an open market sale of $50 million in government securities from member banks. If the oversimplified money multiplier is assumed, then the money supply will
a. increase by $500 million.
b. increase by $100 million.
c. decrease by $100 million.
d. decrease by $500 million.
d
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According to the ability-to-pay principle, taxes should be levied on a person according to his or her ability to bear that tax burden
a. True b. False Indicate whether the statement is true or false
Concluding that a company is in violation of antitrust laws because it controls over 90 percent of the market is an application of judgment by:
A. comparative advantage. B. performance. C. design. D. structure.
What is the civic externality associated with education?
A. A well-educated person votes more intelligently and the results of their votes benefits all citizens. B. A well-educated person does not vote and the results of their votes benefits all citizens. C. A well-educated person runs for office and their service benefits all citizens. D. A well-educated person always votes for the opposition, and that hinders the progress of the community.
What kind of relationship exists between the price of gas and the quantity demanded for gas if the quantity demanded for gas falls when the price of gas increases?
A. Perverse B. Direct C. Normal D. Inverse