Under a fractional reserve banking system
A. banks keep all of their deposits on hand as reserves.
B. banks keep all of their reserves on hand as deposits.
C. banks keep a fraction of their deposits on hand as reserves.
D. banks keep a fraction of their reserves on hand as deposits.
Answer: C
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A compensated demand curve contains no
a. income effects. b. substitution effects. c. price elasticity. d. income compensation.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
Changes in business inventories are counted as part of gross private domestic investment
Indicate whether the statement is true or false
Macroeconomics approaches the study of economics from the viewpoint of:
A. the entire economy. B. governmental units. C. the operation of specific product and resource markets. D. individual firms.