The concept of holding reserves, such as gold, that are less than the value of the total deposits
A. is known as non-credit banking.
B. is known as fractional reserve banking.
C. has been illegal since the passage of the Financial Services Modernization Act of 1999.
D. None of these are correct.
Answer: B
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Fill in the blank: ________ cost refers to the next-best option a person gives up when making a choice
A) Accounting B) Objective C) Efficient D) Opportunity E) Regrettable
Think birth rate and growth in GDP per capita. A major reason that China adopted a one- child-per-family policy was that
a. it had to comply with United Nations standards to qualify for economic aid b. its per capita income would increase if the population growth moderated c. people were migrating to urban centers and there was insufficient housing for them d. resources could be diverted to military: a simple case of guns and butter e. it chose the big-push development strategy, which includes family planning
Assume that there is no accelerator affect. The MPC = 3/4 . The government increases both expenditures and taxes by $600 . The effect of taxes on aggregate demand is 3/4 the size of that created by government expenditures alone. The crowding out effect is 1/5 as strong as the combined effect of government expenditures and taxes on aggregate demand. How much does aggregate demand shift by?
a. $1480 b. $480 c. $160 d. None of the above is correct.
The Cournot model assumes that the firms take their competitors output as fixed.
Answer the following statement true (T) or false (F)