If a bank needs to acquire funds quickly to meet an unexpected deposit outflow, the bank could
A) borrow from another bank in the federal funds market.
B) buy U.S. Treasury bills.
C) increase loans.
D) buy corporate bonds.
A
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The supply of public goods must be left to government and nonprofit institutions. Why?
What will be an ideal response?
Refer to the scenario above. Which family pays the highest percentage of its income as tax if income taxes collected by the local government are regressive in nature?
A) The first household B) The second household C) The third household D) The fourth household
Positive economics
A) always gives an optimistic spin to economic news. B) is concerned with the economic policies that should be implemented. C) is objective. D) was not used by nineteenth century economists.
Which of the following will discourage investment?
A) high and variable rates of inflation B) well-defined property rights C) a low and steady rate of inflation D) low tax rates