The person or firm that pays a tax bears the burden of the tax
Indicate whether the statement is true or false
FALSE
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Make use of a T-account to show the effect of the Fed's sale of $500 million worth of government securities on the Fed's balance sheet. (assume the Fed receives a check from the sale of securities)
What will be an ideal response?
Which of the following is a disadvantage of the European Monetary Union to member countries?
A. Less monetary independence for each member B. Lower cost of exchanging currencies C. A reduced likelihood of conflict between members D. Greater price transparency
When a monopolist sells the same product at different prices and the prices are NOT related to cost differences, we have
A. monopoly pricing. B. marginal cost pricing. C. price differentiation. D. price discrimination.
Which of the following Fed actions increases the excess reserves of commercial banks?
A. Selling bonds to the public B. Selling bonds to commercial banks C. Increasing the discount rate D. Lower the reserve ratio