If people refused to use banks to create checkable deposits, the banking system would:
a. not be affected in the money creating process.
b. not have a way to loan out excess reserves.
c. be able to expand the money supply by more than the money multiplier indicates.
d. not be able to create new money.
e. not be able to find new borrowers.
d
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Transfer payments refer to payments from the government to ________
A) other government agencies B) distribute state taxes collected by the government to individual states C) reimburse property taxes paid by states for government property leases D) certain individuals or groups
Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?
A) an increase in the price of ostrich feed B) an increase in the price of ostriches C) a decrease in the price of goats D) an increase in the demand for goats
If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. C B. NX C. G D. A change to the income tax rate will not affect any of these components.
Discounting is a process of turning a stream of future returns into a present dollar equivalent
Indicate whether the statement is true or false