An important effect of fractional reserve banking is that bankers have
a. little control over total reserves.
b. total control over the amount of lending in the economy.
c. no control over the amount of reserves in the banking system.
d. some discretion over the money supply.
d
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A diagram of a productivity curve has
A) real GDP per hour of labor on the y-axis and hours of labor on the x-axis. B) capital per hour of labor on the y-axis and real GDP per hour of labor on the x-axis. C) real wages per hour on the y-axis and real GDP per hour of labor on the x-axis. D) real GDP per hour of labor on the y-axis and real wages per hour on the x-axis. E) real GDP per hour of labor on the y-axis and capital per hour of labor on the x-axis.
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A) the monopsonist will take advantage of labor and offer them lower wages. B) in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. C) in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. D) the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.
Fiat money: a. has value because people accept it
b. has a high intrinsic value. c. is backed by commodity reserves. d. is money because of its metallic content. e. is frequently clipped.
Mercantilism was a system in which all of the following were true except:
A. governments limited growth by protecting monopolies. B. governments encouraged growth by supporting trading activities. C. economic rather than social forces controlled the central economic decisions. D. political rather than social forces controlled the central economic decisions.