Banks would be expected to minimize holding excess reserves because this practice is
A. illegal.
B. not profitable.
C. technically difficult.
D. subject to a stiff excess reserves tax.
not profitable
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Social Security is an income support program, designed primarily to maintain the living standards of the poor
a. True b. False Indicate whether the statement is true or false
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q ________ has a higher fixed cost and ________ has a higher marginal cost.
A. Mega Corp; Big Inc B. Big Inc; Big Inc C. Mega Corp; Mega Corp D. Big Inc; Mega Corp
Which of the following explains why a monetary policy in a nation with an exchange rate peg, such as Denmark, would NOT be possible?
a. The nation must keep its import tariffs in sync with the import tariffs of the nation to which it pegs. b. The nation must keep its price level and nominal interest rate equal to the price level and nominal interest rate in the nation to which it pegs. c. The nation must keep its taxes and budget deficit in sync with taxes and budget deficit in the nation to which it pegs. d. The nation is no longer able to print its own money, since it is using the currency of the nation to which it pegs.
Leakages include
A. Exports. B. Government spending. C. Inventories. D. Business saving.