Following a new deposit of $500, the loans of a commercial bank increase by $400. In this situation, the reserve ratio is most likely
A. 9 percent.
B. 20 percent.
C. 10 percent.
D. 80 percent.
Answer: B
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The deadweight loss from a tax
A) is the tax revenue the government collects when people die. B) is the split of a tax between the amount paid and the amount collected. C) equals the amount collected as revenue from the tax. D) is called the excess burden of the tax. E) equals the amount collected as revenue from the tax plus the excess burden of the tax.
An income tax on labor income decreases the ________ of potential GDP, and a tax on interest income decreases the ________ of potential GDP
A) growth rate; growth rate B) level; level C) growth rate; level D) level; growth rate E) None of the above answers is correct.
The largest source of household income in the United States is:
A. rental income. B. stock dividends. C. interest earnings. D. wages and salaries.
A perfectly competitive firm will be operating at its shutdown point if it operates
A. at the minimum point on its marginal cost curve. B. at the minimum point on its average variable cost curve. C. at the minimum point on its average total cost curve. D. where P = MC.