Statistical studies in the United States have reached the conclusion that for low-income workers
A. the substitution effect is greater than the income effect.
B. the income effect is greater than the substitution effect.
C. the income effect is about equal to the substitution effect.
D. the substitution effect is of the “wrong” sign.
Answer: A
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Income is distributed very unequally in ________ and very equally in ________
A) Finland and South Africa; Brazil and Sweden B) Brazil and South Africa; Finland and Sweden C) Finland and Sweden; Brazil and South Africa D) Brazil and Sweden; Finland and South Africa
Refer to Table 9-3. If the required reserve ratio is 10% and the market interest rate is 6%, then the opportunity cost of holding excess reserves is
A) zero since Alpha-Beta does not hold any excess reserves. B) $0.9 million. C) $2.4 million. D) $4 million.