On a line chart, the income of a consumer is measured along the horizontal axis, and his consumption is measured along the vertical axis. The slope of the line is equal to:
A) change in consumption plus change in income.
B) change in consumption minus change in income.
C) change in consumption multiplied by change in income.
D) change in consumption divided by change in income.
D
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Suppose Bill Gates deposits $20 million into his checking account at Wells Fargo Bank. If the required reserve ratio is 10 percent, what is the maximum change in money supply?
A) -$200 million B) -$180 million C) $2 million D) $180 million E) $200 million
Which of the following would best encourage investment in human capital?
a. Higher marginal tax rates on labor income b. Higher interest rates c. Expansion of college loan programs d. A decrease in the wage gap between high school and college-educated workers e. A reduction in life expectancy that encourages earlier retirement