One of the cash items included on the asset side of banks' balance sheets is reserves. What makes up reserves and what is their purpose?
What will be an ideal response?
Reserves are made up specifically of two items: one is cash in the bank, also referred to as vault cash. The other is deposits the bank has at the Federal Reserve. The main purpose of reserves is to make sure banks have enough liquidity to meet the demands of customers for withdrawal requests.
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A policy which gains the winners more than the losers lose, in principle, could never result in unanimous approval of the policy.
Answer the following statement true (T) or false (F)
Refer to Table 19-9. Suppose that the above table represents the goods and services produced in a very simple economy in 2016. Assume that steel is used as an input in the production of autos. Using that information, calculate GDP for the year 2016
What will be an ideal response?
Graphically, the average productivity of labor would be illustrated by the slope of the marginal productivity curve at the relevant point
a. the slope of the total product curve at the relevant point. b. c. the negative of the slope of the marginal productivity curve at the relevant point. d. the slope of the chord connecting the origin with the relevant point on the total output curve.
With economic development comes each of the following, EXCEPT
A. a decline in the birth rate. B. an increase in the stock of capital. C. rising per capita GDP. D. a declining wage rate.