When commercial banks extend loans, they are able to expand the supply of money in the United States because the U.S. has
What will be an ideal response?
a fractional reserve banking system
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Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180If columns 1 and 3 are this firm's demand schedule, then economic profit will be
A. $70. B. $90. C. $80. D. $60.
Other things equal, by decreasing the interest rate paid on banks' required reserve deposits, the Fed can ________ the level of reserves banks are willing to hold, which would result in a(n) ________ in the money supply
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
An outcome is socially optimal if it:
A. maximizes total economic surplus. B. leaves no unexploited opportunities for individuals. C. is an equilibrium outcome. D. it is determined by the government.
The legislative intent of the Gramm-Rudman-Hollings Act was to
A. increase defense-related expenditures. B. decrease personal and corporate taxes. C. reduce the federal deficit by a set amount each year. D. increase federal interstate highway expenditures.