When required reserves exceed actual reserves, commercial banks will be forced to have borrowers:
A. Use credit cards
B. Withdraw some of their deposits
C. Repay loans
D. Take out more loans
C. Repay loans
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In the United States during the 1950s and 1960s
A) the inflation rate was frequently less than 2 percent a year. B) prices rose sharply. C) prices fell. D) there was zero inflation.
An assumption behind the infant-industry argument for tariff protection is that
A) foreign competitors are selling output below average cost. B) the domestic industry will be facing an upward adjustment in its average cost. C) the domestic industry will eventually gain a comparative advantage in producing the good. D) the market needs additional competition to satisfy consumer demand.
An increase in housing starts, typically due to __________ interest rates, is often thought to precede __________
A) rising; an expansion B) rising; a recession C) falling; an expansion D) falling; a recession
In recent years, the Chinese government's actions have had an impact on interest rates in the United States
Indicate whether the statement is true or false