Refer to the graph shown. With an effective price ceiling at Pc, the quantity supplied:

Suppose there was a banking crisis. The money supply would shrink by the greatest amount if the public ________ their currency—deposit ratio and the banks ________ their reserve—deposit ratio

A) decreased; decreased B) decreased; increased C) increased; decreased D) increased; increased

Which of the following is true of the tax and transfer programs of the United States?

a. Tax-transfer programs persistently redistribute income from the rich to the poor. b. Social Security, the largest transfer program, redirects income toward the elderly, a group with above-average levels of both income and wealth. c. The bulk of agriculture subsidies go to large farmers with above-average incomes. d. Taxes generally take a larger share of the income of the poor than is true for those with higher incomes. e. Both b and c are true.