Table 122 -Refer to Table 12

question 96

Multiple Choice

Table 12.2
$\begin{array}{c}\text { Balance Sheet }\\\quad\quad\quad\text { Assets } \quad\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }\\\begin{array}{|c|c|c|c|}\hline\text { Cash } & \$ 5,000 & \begin{array}{c}\text { Demand } \\\text { Deposits }\end{array} & \$ 20,000 \\\hline \text { Loans } & 15,000 & & \\\hline \text { Total Assets } & \$ 20,000 & \text { Total Liabilities } & \$ 20,000 \\\hline\end{array}\end{array}$


-Refer to Table 12.2. Assume a reserve requirement of 10 percent. The maximum amount of new loans the bank could extend is _____.

• A) $500
• B) $1,000
• C) $2,000
• D) $3,000
• E) $4,000

Distinguish between different types of taxes (income, sales, excise) and their implications for taxpayers at various income levels.

Recognize the influence of taxes on labor market equilibrium, including employment levels and wage rates.

Understand the initial impact of a payroll tax on firms' costs and workers' take-home pay.

Identify the changes in employment levels resulting from the imposition of a payroll tax.

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