One hundred percent reserve banking refers to a situation in which banks' reserves equal 100 percent of their:
A. profits.
B. loans.
C. deposits.
D. income.
Answer: C
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A successful market economy requires well defined property rights and
A) a safety net to ensure that those who cannot participate in the market economy can earn an income. B) detailed government regulations. C) balanced supplies of all factors of production. D) an independent court system to adjudicate disputes based on the law.
An unregulated market economy provides material wealth but does not generate effective control of environmental damage.
Answer the following statement true (T) or false (F)
Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$9000.9$2,500$2,500$1,000Determine the change in the equilibrium level of Consumption (find ?C) following a decrease in investment from 2,500 to 2,000 (?I = -$500).
A. positive $4,500 B. positive $4,000 C. negative $4,000 D. negative $4,500
Another way of stating that investment is independent of real disposable income is to say that it is
A. complementary. B. autonomous. C. substitutable. D. inversely related.