When a low-income individual receives a transfer payment, that individual has less of an incentive to forgo leisure time for work time
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is most likely to reduce an individual's current spending?
A) Paying back a loan in the future B) Depositing money in a bank today C) Borrowing money today D) Withdrawing money in the future
In a market economy:
A. collective decision-making is more important than individual decision-making. B. goods and services are distributed as if by an "invisible hand" to those who can not afford them. C. profit provides an incentive to be productive. D. the distribution of wealth is equitably distributed.
For the following questions assume the following facts:
(1 ) Balance of Payments = 0 prior to the transactions. (2 ) Person A (who lives in the United States) purchases an airplane from British Airways for $150,000. (3 ) Person A pays with a check from his account at First Union Bank in the United States. (4 ) British airways, since it will need dollars in 1 month, deposits the check at the Bank of England. (5 ) Bank of England deposits the $150,000 at Commonwealth bank, which is located in the United States. Due to the transactions above, what are the effects on the reserve at the Fed? A) Fact 2 is a decrease of $150,000, fact 5 is a decrease of $150,000, a net effect of -$300,000. B) Fact 3 is a decrease of $150,000, fact 5 is an increase of $150,000, a net effect of 0. C) Fact 3 is an increase of $150,000, fact 5 is a decrease of $150,000, a net effect of 0. D) Both fact 3 and fact 5 result in increases of $150,000, a net effect of +$300,000. E) Both fact 3 and fact 5 result in decrease of $150,000, a net effect of -$300,000.
What led to the over-extension of credit by some private banks and central banks in the euro zone prior to the 2009 euro crisis?
What will be an ideal response?