Automatic stabilization occurs
A) when the Congress makes changes to transfer payment programs.
B) because monetary policy is effective.
C) because government purchases fluctuate with real GDP.
D) because taxes and transfer payments fluctuate with real GDP.
D) because taxes and transfer payments fluctuate with real GDP
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What will be an ideal response?
If the potential money multiplier in the U.S. is 4, then a $2,000 increase in demand deposits when banks hold excess reserves will result in which of the following?
a. the money supply will decrease by $8,000 b. the money supply will remain unchanged because the excess reserves will cancel out the potential loans c. the money supply will increase by $8,000 d. the money supply will increase by more than $8,000 e. the money supply, if it increases at all, will increase by less than $8,000
Briefly explain how the term “price maker” is related to monopolies.
What will be an ideal response?
Deciding to engage in tax evasion requires consideration of all of the following, except the
A. probability of being caught. B. probability of conviction if caught. C. probability of winning extra money. D. costs of defending oneself.