Reducing taxes on capital gains is an example of a supply-side tax cut.
Answer the following statement true (T) or false (F)
True
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What is the goal of bank regulation?
a. to ensure borrowers have easy access to investable funds b. to maintain the solvency of banks by ensuring maximum profits c. to maintain the solvency of banks by avoiding excessive risk d. to prevent banks from engaging in profitable risk
Bank B receives a deposit of $40,000 . If the value of the money multiplier in the economy is equal to 5, the final change in demand deposits of Bank B will be equal to: a. $40,000
b. $200,000. c. $800,000. d. $150,000.
Which of the following statements is NOT an explanation of Leontief's paradox?
a. Leontief ignored the fact that the United States imports a variety of products rather than just one. b. He ignored the fact that U.S. labor is highly skilled. c. He ignored the importance of land as a factor in many U.S. exports. d. rade patterns in 1947 might have been affected by the fact that World War II had ended only two years earlier.
Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
A. people spend a large share of their income on the product. B. people spend an insignificant share of their income on the product. C. the population in the market area is large. D. there are many good substitutes for the product.