Since the enactment of the Depository Institutions Deregulation and Monetary Control Act of 1980, the legal reserve requirements set by the Fed apply to all banks, savings and loan associations, and credit unions
Indicate whether the statement is true or false
T
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The decision by inflation targeters to choose inflation targets ________ zero reflects the concern of monetary policymakers that particularly ________ inflation can have substantial negative effects on real economic activity
A) below; high B) below; low C) above; high D) above; low
A firm that is a "pure monopoly" is
a. a seller of a highly advertised and differentiated product in a market with low barriers to entry in the long run. b. the only seller of a good for which there are no good substitutes in a market with high barriers to entry. c. the only buyer of a unique raw material. d. the producer of a product subsidized by the government.
Frictional unemployment
a. can be created both by workers quitting to find more suitable jobs and changes in a country's comparative advantages. b. can be created by workers quitting to find more suitable jobs but not by changes in a country's comparative advantages. c. can be created by changes in a country's comparative advantages, but not by workers quitting to find new jobs. d. is not created by workers quitting to find more suitable jobs nor by changes in a county's comparative advantages.
According to the Keynesian model,
A. wages are flexible because workers wouldn't otherwise be able to keep their jobs. B. the price level is somewhat fixed due to social forces, which keeps an economy from remaining at an equilibrium level of unemployment. C. the government puts price controls on the economy, keeping the price level fixed. D. prices are subject to significant fluctuations as demand and supply change.