During a recession, banks are likely to
A. experience a deficit.
B. decrease deposits.
C. hold excess reserves.
D. Banks are likely to do all of these choices.
C. hold excess reserves.
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When an economy is on the balanced growth path, the growth rate of real GDP per capita is determined by the growth rate of
A) convergence. B) capital accumulation. C) total factor productivity. D) the labor force.
Wheat farmers in Kansas would benefit from a devastating crop failure in North Dakota (another major wheat-producing state) if the U.S. demand for wheat is
a. inelastic b. elastic c. unit elastic d. downward sloping e. perfectly elastic
It has been argued that state-subsidized ____ programs have benefited the middle and upper-income quintiles more than the poor
a. food stamp b. housing subsidy c. higher education d. Medicaid
When the government imposes a barrier to entry in a market,
a. more resources will be wasted by firms attempting to secure and maintain market power. b. the options available to consumers will increase in the protected market. c. allocative efficiency will be improved by the reduction of wasteful competition. d. consumers will be better able to direct the smaller number of producers to serve their interests.