You observe people going to the bank more frequently. Other things the same, this could result from
a. an increase in inflation which increases money demand.
b. an increase in inflation which reduces money demand.
c. a decrease in inflation which increases money demand.
d. a decrease in inflation which reduces money demand.
b
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In the early 2000s, lenders began issuing mortgage loans to people who would normally not be qualified to take out loans because they did not meet lending standards. Those borrowers are known as
A) alternative borrowers. B) weak borrowers. C) subprime borrowers. D) credit risks.
The marginal propensity to consume is
a. the change in consumption associated with a change in income. b. equal to the marginal propensity to save minus 1. c. equal to 1 minus the marginal tax rate. d. the change in consumption associated with a change in wealth.
Social Security wealth is the future value of the Social Security system.
A. True B. False C. Uncertain
Which of the following is a tax on labor?
a. Medicare tax b. inheritance tax c. sales tax d. All of the above are labor taxes.