High-powered money consists of
A) bank reserves plus currency held by the nonbank public.
B) bank reserves minus vault cash.
C) all deposits at the Fed.
D) deposits at the Fed plus vault cash.
A
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Frictional unemployment includes
A) unemployment caused by normal labor turnover associated with people leaving and entering the labor force. B) unemployment caused by industries moving overseas to better meet foreign competition. C) unemployment caused by a lack of education so that workers do not possess necessary job skills. D) unemployment caused by automation of the work place that displaces unskilled workers.
Transforming the tax base of an income tax by subtracting savings has the advantage that _____
a. a progressive rate structure can be applied to a consumption tax b. all income can be taxed at a flat rate c. it double taxes income d. it guarantees progressivity