Reserves must be deposited in the Federal Reserve Banks by:
A. only commercial banks that are members of the Federal Reserve System.
B. all depository institutions, that is, all commercial banks and thrift institutions.
C. state-chartered commercial banks only.
D. federally chartered commercial banks only.
B. all depository institutions, that is, all commercial banks and thrift institutions.
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When the price of a good rises, people:
A. generally buy more of the good. B. tend to buy cheaper substitutes instead. C. rarely buy cheaper substitute goods instead. D. typically do not decrease their consumption of the good.
If the dollar appreciates and foreign goods become less expensive, the total planned expenditures on domestic goods and services will
A) increase due to the open economy effect. B) fall due to the interest rate effect. C) fall due to the open economy effect. D) increase due to the interest rate effect.
A college student is thinking about running an ice-cream truck over the summer. What would economists say is the student's main objective?
A. To maximize hourly earnings B. To maximize his profit C. To spend as little on inputs as possible D. To sell as many ice cream cones as possible
Cyrus is deciding whether to purchase a home. Which of the following would be considered an autonomous factor in his decision?
a. whether or not he will receive a raise this year b. how much money will be taken out of his paycheck this year for taxes c. whether he expects the economy to “do well” this year d. how much disposable income he expects to have this year