In the real-world banking system, a bank can eliminate a reserve deficiency by
A. borrowing in the Federal funds market.
B. borrowing from the Fed's discount window.
C. selling securities.
D. Any one of the choices or some combination is possible.
D. Any one of the choices or some combination is possible.
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Expansionary fiscal policy
A) can be effective in the short run. B) can be effective in the long run. C) causes complete crowding out in the short run. D) is never effective because of crowding out.
An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Which of the following statements is true?
a. Derived demand for labor depends on the demand for the product labor produces. b. Unions can either increase demand or decrease the supply of labor. c. Investment in human capital is expected to increase the demand for those workers. d. All of these.
Define the following terms briefly and concisely and indicate their importance to the study of economics
a. entrepreneurship b. investment c. capital d. innovation e. discounting