A barter system is inefficient for which of the following reason? Because of inf

Question

A barter system is inefficient for which of the following reason? Because of inflation in the money system. Because in hatter transactions the gains from trade for buyers come at the expense of an equivalent loss from trade for sellers Because hatter requires coincidence of wants Because people in close-knit communities cannot trust the quality of the batter Roods being exchanged. It loans are $80,000. excess reserves are $ 3, 000, and deposits are $ 100,000 then the money multiplier must be 015 B. Which of the following is un example of an automatic stabilizer? Congress legislates lower tax rates to increase consumption and investment. Tax rates are increased during a recession to maintain a balanced budget. A regressive income tax system reduces tax revenues (as n share of income) as income expands Revenues from the corporate inconsc lax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted Suppose Henry's income is $40,000 and he pay a tax of income is $100,000 and she pays a tax of $5,000 Such a lax system is regressive. progressive. proportional Unemployment compensation payments: rise during a recession and thus reduce the severity of the recession rise during a recession and thus increase the severity of the recession rise during inflationary episodes and thus reduce the seventy of the inflation fall during a recession and thus increase the seventy of the recession. The currency of the United States is: hacked dollar for dollar by gold. backed by a gold cover of 50 percent not backed by any precious metal backed by the government's silver reserves. back by the government's gold and silver reserves The Federal Reserve System was founded in: Income tax collections: fall during periods of prosperity, thus increase federal budget deficits rise during periods of prosperity, thus reduce federal budget deficits fall during recessions, thus increase the problem of unemployment. rise during recessions, thus increase the problem of unemployment Supply-siders' policy recommendations include: lower tax rates, spending cuts, and increased government regulation. lower tax rates, lower resource prices, and decreased government regulation. lower tax rates, spending increases, and decreased government regulation. lower lax rates, spending increases, and increased government regulation. higher tax rates, spending cuts, and decreased government regulation.

Explanation / Answer

39(c)

40 (e) more information required - here, we are unable to find the reserves that are required which is needed to calculate the money multiplier

41 (A) An automatic stabilizer is any mechanism in the economy that reduces the amount by which output changes in response to changes in autonomous demand. It lowers the income level during a boom and raises it during a slump. Examples of these would be proportional income tax and unemployment benefits.

42(C) Both pay 5% of their income as taxes

43(A) See explanation in 41

44(C) it floats freely based on demand and supply

45(A) Founded in December 23, 1913

46(B) Income tax collections rise during boom and reduce deficits

47(B) According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices; Typical policy recommendations of supply-side economists are lower marginal tax rates and less government regulation.

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