The money supply will not increase if you deposit $100 given to you on your birthday in your bank account, and the bank holds all $100 of that money as excess reserves
a. True
b. False
Indicate whether the statement is true or false
True
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Which of these statements is not true of both external cost and external benefit situations? a. They both can lead to market failure
b. They both cause welfare costs. c. They both make it possible for government intervention to lead to more efficient results. d. All of the above are true.
Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to
a. hold greater excess reserves than socially desirable during a recession b. create insufficient money when the economy is at full employment c. engage in money creation opportunities when the economy is in a recession d. hold no reserves when the economy is in a recession e. lend the least possible amount when the economy is at full employment
In recent years, established U.S. stock markets have faced significant competition from:
a. new start ups b. small, regional stock markets c. foreign stock markets d. people buying & selling stocks online
If economic output is increased by increasing the number of people working in the economy, then
a. both GDP per capita and labor productivity will increase. b. both GDP per capita and labor productivity will decrease. c. GDP per capita will increase. d. Labor productivity will increase.