How is the money supply related to planning investment and government deficit spending?
What will be an ideal response?
Absent a change in velocity, an increase in the money supply is necessary to give businesses or the government the means to increase their spending. Borrowing from the bank for increased investments or government deficit spending tends to bring about an increase in money supply by leading the bank to create demand deposits.
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Outcome-oriented notions of equity:
A. focus on the procedures used to arrive at an allocation of resources rather than on the allocation itself. B. focus on whether the process used to allocate resources yields fair results. C. include process-oriented notions of equity. D. focus on what people could choose rather than what they actually choose.
Plurality voting fails which of the criteria for an ideal voting system?
A. Transitivity B. No dictator C. Unanimity D. Independence of irrelevant alternatives
Which of the following statements is correct?
A. Export sales are not important to U.S. industries because U.S. GDP is so large. B. Many U.S. industries are very dependent on export sales. C. The United States is increasingly dependent on exports, but not on imports. D. The United States would not be affected if it quit importing goods.
Explain why a bank with a high debt-to-equity ratio may be more profitable than a bank with a lower ratio but would also have a higher level of risk.
What will be an ideal response?