The consolidated balance sheet of the all banks in Macroland is presented below: AssetsLiabilitiesCurrency$1,000Deposits$1,000Loans$ 900 Based on this balance sheet the banking system of Macroland can be described as a(n) ________ banking system.
A. 100-percent-reserve
B. barter
C. fractional-reserve
D. government-insured
Answer: C
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Personal income is:
A. total income received by households after taxes. B. the amount households have available for consumption, savings, and payment of personal taxes. C. national income plus corporate profits and Social Security (FICA) plus transfer payments, and other income. D. equal to gross domestic product.
When gross investment is positive, net investment ________.
A. must be positive B. is always zero C. may be either positive or negative D. must be negative
Why is the equilibrium in a trust game socially inefficient?
What will be an ideal response?
A worker pays a tax for Social Security at a constant rate up until a certain level of income is reached. Beyond that income level, no more Social Security tax is paid. The Social Security tax is an example of a
A) progressive tax. B) regressive tax. C) proportional tax. D) sales tax.