To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency, the Federal Reserve could
A) raise government spending. B) sell Treasury securities.
C) raise bank taxes. D) lower the required reserve ratio.
B
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Banks create money whenever they
A) accept a deposit. B) lend excess reserves to a borrower. C) receive monthly payments on their loans. D) receive interest on existing loans.
Decrease in stock market wealth will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Under what conditions is it likely that the labor supply curve may become backward bending? What roles do the income and substitution effects play?
Voters' Ordered PreferencesAbbyBobCarloPublic parksPublic zooPublic transportationPublic zooPublic transportationPublic parksPublic transportationPublic parksPublic zooIf a pair-wise majority vote was held and the voters' preferences are shown in the table, assuming public parks and transportation was the first pair to be voted on, which voter will be happiest with the outcome?
A. Bob and Carlo will be equally happy. B. Carlo C. Abby D. Bob