The money supply may expand by less than the amount predicted by the money multiplier, if:
A. banks do not loan out all of their excess reserves.
B. banks loan out all of their excess reserves.
C. people do not deposit the money that they receive in the bank.
Answer: A. banks do not loan out all of their excess reserves.
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If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease. B) equality of incomes would increase but efficiency would decrease. C) efficiency would increase but equality of incomes would decrease. D) efficiency and equality of incomes would both increase.
The effectiveness of direct controls on pollution depends on: (i) the budgets and enthusiasm of the regulatory bodies; (ii) sufficiently strong statutory penalties
a. i and ii b. i but not ii c. ii but not i d. neither i nor ii