Lowering the legal reserve requirement might not result in an increase in the money supply if
a. tax rates are also lowered at the same time
b. tax rates are increased at the same time
c. borrowers are unwilling to borrow the new funds the banks have available for loans
d. borrowers are willing to borrow the new funds the banks have available for loans
e. borrowers expand their borrowing because of the lower interest rates that banks offer
C
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A small amount of international debt can become a heavy burden on a developing economy if
a. interest payments are a large percentage of export revenues b. a trade surplus develops c. the economy grows rapidly d. the country becomes more developed e. total borrowings exceed the $50 million level fixed by the IMF
Which of the following best explains how income inequality is calculated?
a. Measure the gap between middle income families and the near-poor b. Compare those with middle incomes to those with low incomes c. Compare those with high incomes, middle incomes, and low incomes d. Estimate the income of those just above and just below the poverty line
In determining the number of persons who are poor in the U.S. when calculating family income
A. only earnings are counted. B. only earnings are counted, while cash transfers from the government are excluded. C. money income, including cash transfers received from the government, is counted. D. both earnings and the value of medical services, food stamps, and housing received are counted.
Which of the diagrams illustrates the effect of a governmental subsidy on the market for AIDS research?
A. A only.
B. B only.
C. C only.
D. D only.