The policy tool of changing reserve requirements is
A) the most widely used.
B) the preferred tool from the bank's perspective.
C) no longer used.
D) still used, even with its disadvantages.
C
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Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60 respectively. Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm:
A. should hire more of both X and Y. B. should hire more of Y and less of X. C. is producing with the least-costly combination of X and Y but could increase its profits by employing more of X and less of Y. D. is using the least-cost combination of X and Y but could increase its profits by employing less of both X and Y.
All of the following issues have been discussed as options for reforming the international financial architecture EXCEPT
A) how high an interest rate the lender of last resort should charge when it makes loans. B) the length of the payback period. C) the size of the loans. D) if the lender of last resort (i.e., the IMF) should consult and collaborate with other international institutions such as the United Nations and the WTO.
In the circular flow diagram, firms' payments ________ the government.
A. flow into and out of B. do not affect C. only flow out of D. only flow into
Benefits from international trade are based on the following differences, except:
A. In resource endowments B. In technological capabilities C. In product quality and other attributes D. In income levels