If households and firms decide to hold less of their money in checking account deposits and more in currency, then initially, the money supply
A) will not change.
B) will increase.
C) will decrease.
D) may increase or decrease.
Answer: A
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Apart from the United States, in countries where central bank board members serve fixed terms of office,
A) none have terms as long as fourteen years. B) many serve for life or good behavior. C) all have terms longer than fourteen years. D) the head of the central bank rarely has a term longer than one year.
One example of an automatic stabilizer is ______.
a. Social Security b. government payrolls c. food stamps d. stock prices
The Budget Act of 1990
A. did not change the top marginal tax rate. B. lowered the top marginal tax rate. C. raised the top marginal tax rate.
The tax base is
A. the minimum amount of tax revenue that government must collect each year. B. the sum of all incomes earned in the United States. C. the maximum amount of tax revenue that government must collect each year. D. the value of all goods, services, incomes, or wealth subject to taxation.