There is a potential for banks to create money when they
A) lend out their excess reserves.
B) fail to lend out their excess reserves.
C) hold more of their customer deposits as vault cash.
D) hold all of their customer deposits as vault cash.
A
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A price ceiling is only effective if it is above the market equilibrium.
Answer the following statement true (T) or false (F)
Two perfectly competitive firms, Firm A and Firm B, both face random demand and have the same expected marginal revenue, as illustrated in the figure below. For which firm would a forecast of demand be more valuable?
A) Firm A
B) Firm B
C) The value for each firm is the same because the expected marginal revenue and marginal cost are the same.
D) A forecast is more valuable for Firm A if the demand will be high and more valuable for Firm B if the demand will be low.
One important similarity among the European economies is
a. the very minor role played by the state in almost all cases. b. the unimportance of safety nets to provide income and employment security. c. the almost total absence of subsidization by the state. d. their common constitutional history e. the high share of transfers for the welfare state.
Explain the infant industry argument.
What will be an ideal response?