A price ceiling set above the equilibrium price is not binding
a. True
b. False
Indicate whether the statement is true or false
True
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For the money expansion process to produce the maximum potential multiplier effect
A) all loans of a given bank have to be deposited in that bank. B) the Fed has to sell government bonds to back up the loans. C) the required reserve ratio has to be 100 percent. D) all loans from banks have to be redeposited throughout the banking system.
Models must
A) be able to yield useable predictions. B) be totally realistic in every detail. C) be a complete reproduction of the real world. D) include every relationship that exists.
The twin responsibilities of the Federal Reserve is called the:
A. dual mandate. B. double duty. C. twin spin. D. two tasks.
If a price floor is not binding, then it will have no effect on the market
a. True b. False Indicate whether the statement is true or false