If a bank receives a $20 million discount loan from the Federal Reserve, then the bank's reserves will
A) increase by more than $20 million. B) increase by $20 million.
C) not change. D) increase by less than $20 million.
B
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Explain what is meant by the phrase a bank's "balancing act."
What will be an ideal response?
Frictional unemployment is
A) related to job search difficulties for potential workers. B) a result of a poor match of worker's abilities and skills with current requirements of employers. C) a result of business recessions that occur when aggregate demand is insufficient to create full employment. D) a result of the seasonal pattern of work in specific industries.
The short-run effects of a favorable supply shock will include
a. an increase in the general level of prices and a decrease in real output. b. an increase in the general level of prices and an increase in real output. c. a decrease in the general level of prices and a decrease in real output. d. a decrease in the general level of prices and an increase in real output.
A newspaper's classified ads are an example of a market
a. True b. False Indicate whether the statement is true or false