The government banking regulation that places an upper limit on the money supply is
a. deposit insurance by the FDIC.
b. reserve requirements on bank deposits.
c. periodic bank examinations and audits.
d. limitations on the types of assets that a bank may own.
b
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The shift of the short-run Phillips curve in the figure above is the result of
A) an increase in the natural unemployment rate. B) a decrease in the expected inflation rate. C) a decrease in the actual inflation rate. D) an increase in the expected inflation rate. E) a decrease in the natural unemployment rate.
To determine horizontal equity, two taxpayers with
A. The same gross incomes should be compared for their effective tax rates. B. The same taxable incomes should be compared for their effective tax rates. C. Different gross incomes should be compared for their effective tax rates. D. Different taxable incomes should be compared for their nominal tax rates.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Graphically illustrate and explain the effects of a decrease in the rate of depreciation (?) on the Solow growth model. In your graph, clearly label all curves and equilibria
What will be an ideal response?