If your bank receives a demand deposit of $20,000 . and the banking system makes loans totaling $180,000 . which is the maximum possible, then the legal reserve requirement must be
a. 0.10
b. 0.20
c. 0.25
d. 0.40
e. 0.50
A
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Raising the personal income tax rate rotates the consumption function ________ and ________ the tax-adjusted MPC
A) downward; raises B) upward; raises C) downward; lowers D) upward; lowers
Because technology has automated so many functions, personal services have become cheaper in order to compete
a. True b. False Indicate whether the statement is true or false
What to produce in a market economy is ultimately determined by the:
A. income plans of households. B. output decisions of business firms. C. spending decisions of households. D. workers' technical skills.
QE2 was an effort to revive the economy in 2010 and 2011. It relied on
A. new tools of monetary policy. B. discretionary fiscal policy. C. the traditional tools of monetary policy. D. all of the options are correct.