A consumer holds money to meet spending needs. This would be an example of the
A. use of money as legal tender.
B. transactions demand for money.
C. asset demand for money.
D. use of money as a measure of value.
Answer: B
Economics
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The federal income tax on wages is the largest source of revenue for the federal government
Indicate whether the statement is true or false
Economics
Assume that fewer businesses offer new bonds to raise investment funds when government borrowing increases interest rates. This would be an example of:
a. Ricardian equivalence. b. overestimating the tax multiplier. c. crowding out. d. increased consumption. e. the balanced-budget multiplier.
Economics