How can the Fed reduce the implicit tax on banks resulting from reserve requirements?
A) lowering the discount rate
B) paying interest on reserves
C) reducing the federal funds rate
D) increasing the federal funds rate
B
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Which of the following are characteristics of a proprietorship? I. Single owner II. Limited liability
A) I only B) II only C) both I and II D) neither I nor II
The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0. B) the growth rate of real GDP. C) the growth rate of the velocity of money. D) the growth rate of the price level.
Economists can objectively evaluate the desirability of the distribution of income.
Answer the following statement true (T) or false (F)
In Graph A, if the price of computers changes from Point B to Point A, what type of change will happen in Graph B?
a. a shift down
b. a shift up
c. a shift to the right
d. a shift to the left