A tax is regressive if it
A. is levied on consumers.
B. takes a smaller percentage of income as income increases.
C. takes a higher percentage of income as income increases.
D. takes the same percentage of income regardless of income level.
Answer: B
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Microeconomic models focus on the behavior of
a. all households, businesses, and government sectors at the same time b. the household sector as a whole c. individual households and business firms d. individual households, business firms, and government agencies e. the business and government sectors
Suppose a bank has $2 million in excess reserves and total reserves of $10 million. A required reserve ratio of 10% is applicable to all deposits at the bank. What is the total amount of deposits at the bank?
a. $800 million b. $80 million c. $10 million d. $20 million e. $100 million