A new tax introduced by the government will:
a. decrease disposable income
b. increase disposable income.
c. lead to a reduction in government spending.
d. lead to an increase in government spending.
e. have no effect on disposable income.
a
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If the Fed sells securities worth $10 million to a commercial bank, the Fed's balance sheet will show
A) an increase in securities held of $10 million and an increase in bank reserves of $10 million. B) an increase in securities held of $10 million and a decrease in bank reserves of $10 million. C) a decrease in securities held of $10 million and an increase in bank reserves of $10 million. D) a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.
If some of unemployed individuals became discouraged workers, which of the following would result?
a. The labor force would decrease and the unemployment rate would decrease. b. The labor force would decrease and the unemployment rate would remain the same. c. The labor force would increase and the unemployment rate would decrease. d. The labor force would decrease and the unemployment rate would increase. e. The labor force would increase and the unemployment rate would remain the same.