If the dollars held for transactions purposes are, on the average, spent four times a year for final goods and services, then the quantity of money people will wish to hold for transactions purposes is equal to:
A. Four percent of nominal GDP
B. 25 percent of nominal GDP
C. Nominal GDP multiplied times 4
D. Nominal GDP divided by 25
B. 25 percent of nominal GDP
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Refer to the scenario above. What is the present value of the benefits of buying the extended warranty?
A) $33.04 B) $39.82 C) $52.10 D) $60
Which of the following is true? a. The private market provides too much of goods that generate external benefits
b. In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output. c. In the case of external benefits, a tax equal to external benefits would result in an efficient level of output. d. In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.
Assume the required reserve ratio (RRR) is 10 percent. If the Fed purchases a $5,000 bond from a bond dealer who then deposits the $5,000 in a HSBC Bank account, what has happened to the money supply?
a. It has decreased by $5,000. b. It has increased by $5,000. c. It has decreased by $4,500. d. It has increased by $4,500. e. There has been no change in the money supply.
Simple majority voting will generate the same result whether taxes are equally divided or unequally divided
Indicate whether the statement is true or false