If banks face a reserve requirement of 10%, then when the Fed increases bank reserves by $20 million, the money supply can be estimated to increase by about
A. $2 million.
B. $20 million.
C. $200 million.
D. None of the choices are correct.
C. $200 million.
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When the U.S. government launched a massive rescue plan in response to the 2008-2009 financial crisis, one of the main actions taken was to ________ because the desire was to lessen the severity of the recession by ________
A) increase the supply of loanable funds; limiting the decrease in investment B) decrease the supply of loanable funds; limiting the decrease in investment C) decrease the supply of loanable funds; encouraging decrease in investment D) increase the supply of loanable funds; encouraging decrease in investment E) increase the demand of loanable funds; encouraging decrease in investment
Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities
The Employment Act of 1946 codified the federal government's commitment to
A) promote high employment consistent with price stability. B) promote high employment irrespective of the effects on price stability. C) guarantee a job to every unemployed person. D) fine companies that engage in excessive layoffs during recessions.
Suppose Sarah Beslin is the Chief Executive Officer (CEO) of an inline skates corporation in Mayberry township. Suppose also that the corporation is a monopsony. It is customary in the U.S. that companies meet with each other at their local community Chamber of Commerce. When Sarah goes to the Mayberry Chamber of Commerce for a CEO meeting,
a. she advises the other CEOs on how to maximize profits b. the meeting participants must beware of taking actions that could be construed as collusion c. there are sessions on buyer and supplier issues d. CEOs discuss how to deal with the rising cost of labor e. she is the only one there