As commercial banks keep fewer excess reserves, money creation
A. increases.
B. decreases.
C. remains the same, as long as banks hold no excess reserves.
D. could either increase or decrease.
Answer: A
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Any event that increases the value of the marginal product of labor will:
A. increase labor demand. B. decrease labor demand. C. increase labor supply. D. decrease labor supply.
A rise in price (prod quota)
What will be an ideal response?
During periods of unemployment
A. the production possibilities curve shifts inward. B. the economy operates at a point outside the production possibilities curve. C. the economy operates at a point inside the production possibilities curve. D. the production possibilities curve shifts outward.
Adverse selection problems can occur when buyers and sellers have different amounts of information about a good for sale.
Answer the following statement true (T) or false (F)