Income redistribution:
a. may increase total utility for society
b. may decrease the total quality of production so much that total utility for society decreases
c. both of the above
d. neither of the above
Ans: c. both of the above
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To reach the maximum money multiplier, it is assumed that
A) there is insufficient loan demand. B) all loans get redeposited in a checkable account. C) loans are diverted into circulating currency. D) commercial banks keep the amount of reserves. equal to total bank deposits.
An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP
Indicate whether the statement is true or false
Assuming that professional and college football are substitutes, an increase in the ticket price for professional football, other things being equal, will:
a. increase the demand for college football tickets. b. decrease the demand for college football tickets. c. not change the demand for college football tickets. d. decrease the demand for professional football games.
Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?
A. Capital B. Natural resource C. Land D. Labor