Banks create money when they make loans

a. True
b. False
Indicate whether the statement is true or false

True

Economics

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Suppose the government considers placing a tax on business profits o that businesses decrease their production and generate a deadweight loss. Revenues from the tax would be used to boost the incomes of the poor

The decision to levy the tax implies that in this case, the government A) values people but not business. B) values efficiency more than its view of fairness. C) profits from taxes. D) values its view of fairness more than efficiency.

Economics

Over the long run, a government's fundamental source of revenues is

A) printing money. B) user fees and taxes. C) exports. D) gold sales.

Economics