A bank's "required reserves" are:
a. held as deposits with the Federal Reserve System.
b. equal to its checkable deposits.
c. equal to its transactions deposits.
d. none of these.
a
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If real GDP exceeds potential GDP, then employment is ________ full employment, and the unemployment rate is ________ the natural unemployment rate
A) equal to; below B) above; below C) equal to; equal to D) below; above E) above; above
Using the production function Real GDP = T (L, K), and the LRAS curve, describe the process by which a decline in taxes on the returns to capital impacts economic growth
The money supply may expand by less than the amount predicted by the money multiplier, if:
A. banks do not loan out all of their excess reserves. B. banks loan out all of their excess reserves. C. people do not deposit the money that they receive in the bank.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.