High-powered money is
A) total deposits received by banks within the system.
B) reserves held by banks to meet withdrawals.
C) deposits divided by the reserve holding ratio.
D) the reserve holding ratio divided by the level of deposits.
B
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A sustained decrease in the price level is known as deflation
a. True b. False Indicate whether the statement is true or false
Which of the following workers would be most likely to work fewer hours as a result of a wage increase?
a. farm worker b. surgeon c. lifeguard d. bartender
When the markets of an economy are more competitive, economic growth
a. is harmed by the resulting low rates of profit for industry. b. is enhanced because producers have a stronger incentive to provide goods efficiently. c. will be slower because prices do not rise as rapidly. d. is unaffected.
Why might government expenditures be more appropriate than tax cuts to counter recessions? Is there any evidence for this thinking?