Typically, the lower the level of income per person in a country, the lower the level of spending per person on health care. This relationship between income and spending indicates that health care is a
A) normal good.
B) inferior good.
C) luxury.
D) necessity.
Answer: A
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The supply of money is determined by the Federal Reserve and is dependent on the demand for money
Indicate whether the statement is true or false
In response to the destructive bank panics of the Great Depression, Congress established ________ in 1934 to reduce the likelihood of asset deflation and bank failures
A) the Federal Reserve system B) banking reserve requirements C) fractional reserve banking D) the Federal Deposit Insurance Corporation
What is a production function? Write an equation for a typical production function, and explain what each of the terms represents
In Macroland there is $12,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 12.5 percent, deposits in Macroland equal ________ and the money supply equals ________.
A. $48,000,000; $75,000,000 B. $96,000,000; $96,000,000 C. $54,000,000; $54,000,000 D. $48,000,000; $54,000,000