According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
a. Always.
b. When the supply of corn is fixed.
c. When nonprice determinants, like income and the number of buyers, are unchanged.
d. When there are no shortages or surpluses of corn.
c
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Additional loopholes in the personal income tax law tend to
A. Increase horizontal equity. B. Increase vertical equity. C. Increase the tax base. D. Make the system less progressive.
The return on bonds rises relative to other assets, in the bond market this will result in:
A. an increase in bond prices. B. the price of bonds falling and the yields increasing. C. a rightward shift in the bond supply curve. D. a shift to the left of the bond demand curve.
Refer to the above figure. Which panel is consistent with the Fed selling bonds?
A. Panel A B. Panel B C. Panel C D. Panel D
Imagine a situation where the deposits at state chartered banks would be insured by a state insurance fund and deposits at nationally chartered banks would be insured by FDIC. How would you expect both depositors and banks would react?
What will be an ideal response?