An open market purchase immediately impacts the banking system balance sheet by
a. increasing required reserves.
b. increasing deposits.
c. increasing the money multiplier.
d. increasing excess reserves.
e. none of the above.
D
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The following statements are accurate except a. Social Security represents in-kind transfer payments. b. The percentage of people below the poverty line fell dramatically between 1960 and 1970
c. The negative income tax was designed to preserve incentives to work. d. Income inequality in the U.S. is less unequal than the inequality of wealth. e. The Gini coefficient measures income distribution.
What economic policy would increase the Gini coefficient?
a. Raise the minimum wage. b. Increase the income taxes of the rich. c. Increase unemployment benefits. d. Lower the minimum wage. e. Raise price floors for farmers.