An open market sale by the Fed will
A) increase bank reserves.
B) increase currency held by the public or vault cash.
C) increase the money supply.
D) reduce the money supply.
D
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The long boom ended in
A) 1999. B) 2001. C) 2008. D) 2012.
If equilibrium GDP is $800 billion greater than the full employment GDP and the multiplier is 4, how much is the inflationary gap?
What will be an ideal response?
Which of the following is an imperfection of market economies?
a. They produce inexpensive services but expensive manufactured goods. b. They place undue importance on the needs of future generations. c. They cannot provide certain goods such as national defense. d. They distribute income too unequally.
National Bank has $1 million in deposits, $200,000 in its reserves, and a required reserve ratio of 14 percent. National Bank has ______ available to lend to borrowers.
a. $140,000 b. $860,000 c. $60,000 d. $28,000