The fraction that banks must, by law, hold as reserves against the checking deposits of their customers is called the
a. federal deposit insurance premium.
b. vault cash quota.
c. excess reserve requirement.
d. required reserve ratio.
D
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The federal government and insurance companies are examples of third party
A) payers for health care. B) users of health care. C) providers of health care. D) observers of health care.
An important difference between perfect competition and monopoly is
A) a monopoly is profitable and a perfect competitor is not. B) the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve. C) the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve. D) a monopoly is not regulated by the market, while a perfect competitor is regulated by the market.
What sequence of events results from a decrease in aggregate demand?
A. The price level rises, inventories increase, firms respond by increasing output and employment. B. The price level falls, inventories increase, firms respond by reducing output and employment. C. The price level falls, inventories decline, firms respond by increasing output and employment. D. The price level rises, inventories decline, firms respond by increasing output and employment.
Aggregate demand is increased by
A. a stronger currency. B. increased interest rates. C. increased taxes. D. increased consumer confidence.