How do banks make profits?
They charge borrowers a higher interest rate than they pay depositors.
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Identify the six basic requirements that economists generally agree must exist for a successful transition from socialism to a market-based system
What will be an ideal response?
An increase in the monetary base that goes into ________ is not multiplied, while an increase that goes into ________ is multiplied
A) deposits; currency B) excess reserves; currency C) currency; excess reserves D) currency; deposits
In the late nineteenth century, technological improvements and cheaper transportation in the United States led to
a. a decrease in minimum efficient scale in many industries b. an increase in minimum efficient scale in many industries c. an overall reduction in productive efficiency d. a narrowing of markets e. price increases in many industries
If the government institutes an investment tax credit and decreases income taxes,
a) real GDP falls, and the price level could rise, fall, or stay the same. b) real GDP and the price level fall. c) real GDP rises, and the price level could rise, fall, or stay the same. d) real GDP and the price level rise.