Prior to the establishment of the Federal Reserve System (1913), reserve requirements
(a) limited the banks' ability to lend.
(b) did not restrict the amount of paper-money issued by banks.
(c) freed banks to create as much money as the market could bear without regard for risk and withdrawal rates.
(d) forced banks to place deposits in the national bank.
(a)
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Something that would cause the long-run aggregate supply curve to shift to the right would be the:
A. unemployment rate decreasing. B. discovery of a new oil reserve. C. inflation rate decreasing. D. The long-run aggregate supply curve is fixed, and does not shift.
A logical explanation for recessions might be that households have suddenly altered their willingness to work. A problem with this explanation is
a. it is inconsistent with patterns of job searches during recessions b. the demand for labor rarely shifts c. the large number of women who entered the labor force in the last four decades d. it is inconsistent with the classical model e. the work ethic that is responsible for the decline in American vacations
On the diagram to the right, a movement from A to B ( upward movement on the supply curve) represents a
A. movement down the supply curve B. Change in supply C. decrease in supply D. change in quantity supplied
If the demand curve is perfectly elastic, the burden of a tax on suppliers is borne:
A. partly by the suppliers and mostly by the consumers if the supply curve is elastic. B. mostly by the suppliers and partly by the consumers if the supply curve is inelastic. C. entirely by the consumers. D. entirely by the suppliers.