Required reserves:
A. Are equal to the required reserve ratio times total reserves.
B. Are the minimum amount of reserves a bank is required to hold.
C. Represent the dollars a bank can lend.
D. Must be held in a bank's vault.
B. Are the minimum amount of reserves a bank is required to hold.
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One group of people uses New York City subways only during rush hour to travel to and from work. Another group uses them only in midday for leisure activity. If New York City wants to increase transit fares with the smallest possible reduction in revenue, for which group should it increase the fare?
a. The rush-hour group because its demand for subway service is more elastic than that of the midday group. b. The rush-hour group because its demand for subway service is less elastic than that of the midday group. c. The midday group because its demand for subway service is more elastic than that of the rush-hour group. d. The midday group because its demand for subway service is less elastic than that of the rush-hour group. e. It doesn't matter because both groups have the same elasticity of demand.
How can a person be an indirect stockholder?
a. by owning stock in a fictitious name b. by owning stock in one company and bonds in another company c. by the government owning stock in a corporation d. by a spouse owning stock in a corporation e. by being a part of a pension fund that invests in stock in corporations
In the year 2020, Alpha has a real GDP of $80 billion and Omega has a real GDP of $10 billion. If Alpha has a growth rate of 2% and Omega has a growth rate of 4%, in what year will Omega catch up to Alpha?
A. 2018 B. 2108 C. 2024 D. 2092
Explain several of the key contributions of Keynes
What will be an ideal response?