Excess reserves make a bank less vulnerable to runs, but bankers do not like to hold excess reserves because holding excess reserves
a. are disliked by depositors.
b. means lower profits for banks.
c. are discouraged by government regulators.
d. All of the above are correct.
b
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An increase in the relative price of a good cannot be caused by
A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good. B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good. C) a decrease in the nominal price of the other good while the price of the good itself remains constant. D) an increase in the nominal price of the other good while the price of the good itself remains constant.
The time-inconsistency problem is likely to arise in Cadmia if _____
a. attempts are made to coordinate monetary policy with fiscal policy b. there is a lag between the announcement of a monetary policy and its implementation c. policy makers initially aim to keep the price level stable but do not follow through as promised d. policy makers do not allow enough time for a new policy to take effect e. there is a deep conflict among monetary policy makers
Gdp:
a. is the dollar value of all the final goods and services produced within the borders of a nation. b. includes intermediate and final goods and services. c. minus an allowance for depreciation of fixed capital equals GNP. d. is a less-than-perfect measure of social well-being because it does not include exports and imports. e. all of these.
Suppose the South had won the Civil War, and trade no longer took place between Northern and Southern states. Explain whether the sum of the North and South GDPs would have been higher or lower than with the current United States