Targeting reserves would be the best choice if
A) there is a close and predictable relationship between bank reserves and total spending.
B) there is an unpredictable relationship between bank reserves and total spending.
C) the discount rate is fixed.
D) private sector spending is very stable.
A
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In addition to being subject to the Fed's reserve requirements, the banks are also required to maintain a capital requirement, which is
A) the ratio of its deposits to its reserves. B) the ratio of its loans to its reserves. C) the ratio of its total assets to its total liabilities. D) the ratio of its equity to its total assets.
How is the optimal level of input usage to produce a certain output identified with the help of isocosts and isoquants?
How would the Bureau of Labor Statistics classify a college graduate who is not currently working but recently turned down an offer for employment at $10 an hour in order to keep looking for a better job?
a. not in the labor force b. employed c. unemployed d. on temporary absence from school
If a firm's sales turn out to be more than expected, inventories will be
A. lower than expected, and there will be more production in the future. B. lower than expected, and there will be less production in the future. C. higher than expected, and there will be less production in the future. D. higher than expected, and there will be more production in the future.