The reserve ratio equals 10 percent. The Fed buys $1 million in U.S. government securities. The most the money supply can increase is
A. $0.1 million.
B. $100 million.
C. $90 million.
D. $10 million.
Answer: D
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Suppose you are the manager of Good Smells, a home fragrance firm. To make your fragrance, you purchase orange peels from orange juice manufacturers. If the demand for orange juice decreases, this will cause the production of orange juice peels to ________ and the price of orange juice peels to ________.
A) decrease; fall B) increase; fall C) increase; rise D) decrease; rise
____ has(have) traditionally been the chief instrument of environmental policy in the United States
a. Taxes on pollution b. Voluntary compliance c. Tradable emissions permits d. Direct controls
The benefits-received principle of taxation is used to support corporate and personal income taxes.
Answer the following statement true (T) or false (F)
Use the following graph for a competitive market to answer the question below.
In a market with supply and demand curves as shown above, a price floor of $2.50 will result in
A. a black-market price greater than $2.50. B. a surplus of 10 units. C. a shortage of 10 units. D. no shortage or surplus.