Banks try to keep their level of excess reserves low because
a. the Fed charges a penalty for holdings of excess reserves.
b. they are concerned that the money multiplier will become too large.
c. they wish to maximize profits.
d. bank regulators levy fines on the amount of excess reserves.
c
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A change in technology that shifts the firm's total product curve upward without changing the quantity of capital used
A) shifts the average total cost curve upward. B) shifts the average total cost curve downward. C) does not change the cost curves. D) shifts the marginal cost curve upward.
In a typical year, ________ of new jobs are created by small firms
A) less than 5 percent B) 10 percent C) 40 percent D) 75 percent
The function of money that provides for a commonly recognized measure of value for the price system is a(n)
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred payment.
The Keynesian economic framework is based on the assumption that prices and wages are sticky and do not adjust quickly
a. True b. False Indicate whether the statement is true or false