Bank reserves will increase if which of the following changes occurs, assuming that there are no offsetting changes elsewhere on the Fed's balance sheet?
A) Fed loans decrease
B) Currency held by the public increases
C) Treasury deposits increase
D) The float decreases
C
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The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds. b. has a strong education system. c. has secure property rights. d. has a tax system that encourages savings.
What is the key incentive that motivates a manufacturer to sell its products?
a. making profits on sales b. pleasing the consumer c. putting others out of business d. popularity of the product
A wage earner making $10,000 pays
A. more in Social Security tax than in personal income tax. B. more personal income tax than in Social Security tax. C. about the same in Social Security tax as in personal income tax.
If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?
A) Public saving is $500 million. B) The budget deficit is $100 million. C) The budget deficit is $500 million. D) Public saving is $100 million.