Your electrician accepts payment only in cash in order to avoid taxes. If you pay him $100,
A) the GDP of your country will increase
B) the GDP of your country will fall
C) the trade surplus of your country will increase
D) the GDP of your country will remain unchanged
Answer: D) the GDP of your country will remain unchanged
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Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 20 percent
If the Federal Reserve reduces the required reserve ratio to 15 percent, then the bank will now have excess reserves of A) $0. B) $5 million. C) $15 million. D) $20 million.
An implicit contract refers to an understanding that the employer will try to keep wages from falling when the economy is weak or the business is having trouble, and the employee will not expect huge wage increases when the economy or the business is strong
a. True b. False Indicate whether the statement is true or false
The rate at which buyers exchange money for a good or service is known as the price.
Answer the following statement true (T) or false (F)
The development of money as a medium of exchange has facilitated the expansion of trade because
A. holding money increases people's wealth. B. no other mediums of exchange are available. C. holding money increases people's income. D. money eliminates the "double coincidence of wants" problem.