Are currency and checkable deposits owned by the government (U.S. Treasury) and the Federal Reserve Bank, commercial banks, and other financial institutions part of the money supply? Explain.
What will be an ideal response?
No. Currency and check able deposits at these institutions are not counted. In the case of commercial banks and other financial institutions, if currency from an individual is deposited in a checking account, and both the currency and check able deposit were then counted as part of the money supply, then it would be double counting. So, the money supply consists only of the currency and check able deposits held by individuals or businesses at financial institutions. The exclusion of currency and check able deposits held by government is more arbitrary, but permits economists to focus on the money supply in the private sector of the economy.
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Refer to Figure 7-2. At the market equilibrium
A) the marginal cost is less than the marginal benefit. B) the marginal cost is greater than the marginal benefit. C) the marginal cost is equal to the marginal benefit. D) the marginal cost is zero.
Discuss the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries
What will be an ideal response?
The demand for salt is
a. inelastic because there are few substitutes for salt and it represents a large percentage of a consumer's budget. b. inelastic because there are many substitutes for salt and it represents a large percentage of a consumer's budget. c. inelastic because there are few substitutes for salt and it represents a small percentage of a consumer's budget. d. elastic because there are no substitutes for salt and it represents a large percentage of a consumer's budget. e. elastic because there are many substitutes for salt and it represents a large percentage of a consumer's budget.
A business with one or more general partners with the same unlimited liability as a sole proprietor is known as a? __________.
A. general partnership B. master limited partnership C. limited partnership D. limited liability company E. sole proprietorship