Why did fewer state banks choose to become or remain members of the Federal Reserve System during the 1960s and 1970s?
A) Nominal interest rates rose.
B) The required reserve ratio rose.
C) The discount rate rose.
D) Open market operations declined.
A
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A recessionary gap is defined as
a. an economy that is operating above its full-employment capacity b. an economy that is operating at full-employment capacity c. the amount by which aggregate expenditure exceeds the aggregate expenditure level needed to generate equilibrium national income at full employment without inflation d. the amount by which aggregate expenditure falls short of the level needed to generate equilibrium national income at full employment without inflation e. the path an economy takes out of a depression
In some cases, specialization allows larger factories to produce goods at a lower average cost than smaller factories
a. True b. False Indicate whether the statement is true or false
The quantity demanded is called inelastic if a ______.
a. huge change in price causes a huge change in quantity demanded b. small change in price causes a small change in quantity demanded c. huge change in price causes only a small change in quantity demanded d. small change in price causes a huge change in quantity demanded
Which of the following is not a component of the demand for loanable funds?
A. Household purchases of housing and durable consumer goods. B. Business purchases of capital goods. C. Government financing of the public debt. D. Household saving.