If the Fed buys a T-bill from an individual rather than from a bank, the effect on the money supply is
a. smaller because there is no multiplier process.
b. larger because of the multiplier process.
c. the same.
d. impossible to predict without knowing the value of the multiplier.
c
Economics
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Fundamental economic problems basically arise from
A) the fact that society has more than it needs. B) turmoil in the stock market. C) the unequal distribution of income. D) our wants exceeding our scarce resources.
Economics
An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when:
a. the supply of the product is relatively inelastic. b. the supply of the product is relatively elastic. c. the demand for the product is relatively elastic. d. either a or c is true.
Economics