A deposit outflow results in equal reductions in
A) loans and reserves.
B) assets and liabilities.
C) reserves and capital.
D) assets and capital.
B
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Approximately 50,000 luxury boats (priced $100,000 or more) are currently produced each year. Using the economic way of thinking, how much revenue would the government actually generate with a $10,000 excise tax on luxury boats?
a. $500 million b. less than $500 million c. more than $500 million d. approximately $5 billion
Which of the following may not be indicated by low long-term interest rates?
(A) That the economy is expected to contract in coming years. (B) That consumers want to borrow money to invest. (C) The future health of the economy. (D) That businesses do not want to borrow money to invest.
A productive efficient society
What will be an ideal response?
Land used to grow corn can also grow soybeans. As the demand for corn used in ethanol began to increase the price of corn, what happened to the price of soybeans?
A) The price of soybeans fell due to lower demand for soybeans. B) The price of soybeans rose since farmers began planting corn instead of soybeans, thus decreasing the supply of soybeans. C) The price of soybeans rose since they were in limited supply and demand increased. D) The price of soybeans stayed the same, since subsidies made up for any difference in the price between corn and soybeans.