In response to the destructive bank panics of the Great Depression, future bank panics are designed to be prevented by
A) the Federal Reserve System conducting open market operations.
B) the establishment of the Federal Deposit Insurance Corporation.
C) establishing a fractional reserve system of banking.
D) increasing the required reserve ratio to 100%.
Answer: B
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In the above figure, equilibrium expenditure is equal to
A) $5 trillion. B) $10 trillion. C) $20 trillion. D) $15 trillion. E) None of the above answers is correct
Refer to Figure 4-11. What is the value of the deadweight loss after the imposition of the price floor?
A) $600 B) $1,800 C) $2,700 D) $3,300
Economists have found that firms are
A) less likely to change prices as a result of shocks to the aggregate economy than shocks limited to the firm's particular sector. B) more likely to change prices as a result of shocks to the aggregate economy than shocks limited to the firm's particular sector. C) equally likely to change prices as a result of shocks to the aggregate economy as they are shocks limited to the firm's particular sector. D) unlikely to change prices as a result of both shocks to the aggregate economy and shocks limited to the firm's particular sector.
How could a manager use the information contained in this regression equation?
What will be an ideal response?