Politicians seeking reelection tend to do the following, except:
A. Inserting "earmarks" in legislation
B. Favoring projects with clear benefits and hidden costs
C. Favoring long-term projects over short-term ones
D. Engaging in pork-barrel politics
C. Favoring long-term projects over short-term ones
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Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 10%. All figures are in billions.Assets (billions of dollars)Liabilities & Net Worth (billions of dollars)Reserves$60Checkable deposits$600Securities140Stock shares260Loans260 Property400 Suppose the Fed wants to reduce the money supply by $400 billion to drive up interest rates and dampen inflation. Assuming that the money multiplier is operating to full effect, to accomplish the desired reduction, the Fed could ________.
A. sell $40 billion of U.S. securities to the banks B. buy $40 billion of U.S. securities from the banks C. buy $20 billion of U.S. securities from the banks D. sell $20 billion of U.S. securities to the banks
The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, deadweight loss equals ________
A) $1,600,000 B) $200,000 C) $800,000 D) $1,800,000 E) $400,000
In order to reestablish people's confidence in the banking system after the passage of the National Bank Act in 1864,
a. banks were no longer allowed to lend more than 10 percent of the value of their capital stock to any single borrower b. banks were encouraged to accept real estate as collateral for loans c. the office of Comptroller of the Currency was abolished d. the Treasury was encouraged to depreciate the currency as rapidly as possible e. Confederate notes and Greenbacks were accepted on a one-to-one basis
The decrease in Money Supply, the Fed would?
A. Buy government's bonds B. Increase the discount rate C. Decrease the reserve requirement D. All of the above E. None of the above