When negative externalities are present, it leads to an underallocation of resources in that area relative to that which is socially desirable
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose Richard Branson withdraws $5 million from his checking account at Bank of America. If the required reserve ratio is 25%, what is the maximum change in deposits in the banking system?
A) -$25 million B) -$20 million C) -$5 million D) -$1.25 million
In essence, a consumption tax puts all saving into tax-advantaged savings accounts
a. True b. False Indicate whether the statement is true or false
The bond market
a. is a financial market, whereas the stock market is a financial intermediary. b. is a financial intermediary, whereas the stock market is a financial market. c. is a financial market, as is the stock market. d. is a financial intermediary, as is the stock market.
If inflation rises more quickly in the United States than in France, U.S. exports to France should rise.
Answer the following statement true (T) or false (F)