Banks normally hold few excess reserves because this practice is:
a. subject to an excess reserves tax.
b. not profitable.
c. against Fed policy.
d. illegal.
b
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With the full implementation of the Single European Act, the EU became a
A) common market. B) free trade area. C) customs union. D) economic union. E) None of the above.
Which of the following is a FALSE statement concerning purchasing power parity?
A) Purchasing power parity states that dollars will tend to exchange for pounds at a rate that maintains a constant purchasing power of a given quantity of a currency. B) Over the long term, a Big Mac in New York will tend to cost the same as a Big Mac in London. C) There should not be significant deviations in the long-run value of purchasing power parity. D) Over the long run, purchasing power parity exerts influence over exchange rates. E) An overvalued dollar buys more in Britain than it does in the United States.
Use of real GDP to measure changes in national output from one period to another can be misleading if
What will be an ideal response?
Suppose the consumption equation is represented by the following: C = 250 + .8YD. The multiplier for the above economy equals
A) 2. B) 3. C) 4. D) 5. E) none of the above