Prior to 1980:
A. nonmember banks did not have to hold non-interest-bearing reserve deposits at the Fed.
B. all banks, member or not, had to hold reserve deposits at the Fed in a non-interest-bearing account.
C. nonmember banks had to hold non-interest-bearing reserve deposits at the Fed.
D. member banks of the Federal Reserve did not have to hold non-interest-bearing reserve deposits at the Fed.
Answer: A
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Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
What kinds of domestic policies, short of significant debt reduction, can be followed to alleviate a debt crisis? How effective have these policies been?
What will be an ideal response?
Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income in 1969 into constant, real dollars of today. B. translate their nominal income today into 1969 dollars. C. take a ratio of their income today with their income from 1969. D. None of these statements is true.
The use of the coordinate system allows
a. for the display of the flows of dollars, goods and services, and factors of production in an economic system. b. for the display of how labor and other resources are organized in the production process. c. for the display of two variables on a single graph. d. for the creation of pie charts and bar graphs.