Which one of the following would lead to an eventual change in the total money supply?
A) a customer's cash withdrawal from an ATM
B) using a credit card to purchase a new television
C) a customer moves funds from her checking account to her savings account
D) depositing a paycheck in a bank
A
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Under a fixed exchange rate system, if the inflation rate in the United States is 5 percent a year and the inflation rate in Australia is 0 percent a year, then the U.S. real exchange rate will
A) increase 5 percent a year. B) decrease 5 percent a year. C) remain constant. D) possibly increase or decrease.
Economists have shown that the burden of a tax is
A) greater on the buyer when the tax is collected from the seller and greater on the seller when the tax is collected from the buyer. B) the same whether the tax is collected from the buyer or the seller. C) greater on the buyer when the tax is collected from the buyer. D) greater on the seller when the tax is collected from the seller.