Ceteris paribus, if the Fed raises the reserve requirement, then:
A. The money multiplier increases.
B. The lending capacity of the banking system decreases.
C. Excess reserves increase.
D. Required reserves decrease.
B. The lending capacity of the banking system decreases.
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Which of the following best explains the R&E Tax Credit?
a. Private firms’ taxes are reduced based on their R&D activities. b. Private firms receive government grants for R&D investments. c. Universities that engage in R&D receive additional tax breaks. d. Citizens receive government grants for developing new technologies.
The quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment determine the:
A. real interest rate. B. average labor productivity. C. labor force participation rate. D. unemployment rate.
The Valley View town council has just purchased a lot and built a soccer field for free public use. What is the main cost of the soccer field to the average citizen?
a. There is no cost because anyone can use it. b. The cost is the lost chance to do other things with the money and land. c. The cost is the user fee required to play soccer there. d. The cost is the salaries of the public officials who made the decision.
The supply curve in a market is vertical instead of upsloping whenever:
A. All buyers are willing to pay only one price for the item B. Sellers have no flexibility in setting the price of the item C. Buyers want to buy a fixed quantity regardless of price D. Sellers have a fixed quantity of the item for sale