Traditionally, the Fed lends to:
A. solvent but illiquid banks.
B. insolvent and solvent banks.
C. solvent, liquid banks.
D. insolvent and illiquid banks.
Ans: A. solvent but illiquid banks.
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The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?
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Suppose Jerry and Joseph are two tenants sharing an apartment having a private lawn. They have agreed to share the costs of cleaning and maintaining it. Jerry would be considered an opportunist if he plants some flowers in this lawn at his own expense without consulting Joseph
Indicate whether the statement is true or false
Most economists believe that
a. a monetary policy that achieves price stability will reduce uncertainty and provide the framework for strong economic growth. b. demand stimulus policies will reduce the long-term average rate of unemployment. c. expansionary monetary policy, if persistently followed, will reduce nominal interest rates. d. inflation is primarily the result of large budget deficits and other elements of expansionary fiscal policy.
A network effect exists whenever
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