The government proposes a tax on halogen light bulbs. Sellers will bear the entire burden of the tax if the
A) demand curve is downward sloping and the supply curve is upward sloping.
B) demand curve for halogen bulbs is horizontal.
C) demand curve for halogen bulbs is vertical.
D) supply curve of halogen bulbs is horizontal.
B
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Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.73 to 0.78 B) decrease from 0.73 to 0.61 C) increase from 1.54 to 1.67 D) decrease from 1.67 to 1.54
The use of collateral
A) allows banks to charge higher interest rates on loans. B) makes it more costly for borrowers to take advantage of their asymmetric information. C) makes it more costly for lenders to take advantage of their asymmetric information. D) has important tax implications for both borrowers and lenders.