When the Federal Reserve was unable to stem the bank panics of the 1960s, Congress responded by:
A. creating the FDIC and offering deposit insurance.
B. declaring a bank holiday and closing banks for 30 days.
C. ordering the printing of tens of billions of dollars of additional currency.
D. taking over the lender of last resort function and assigning this function to the U.S. Treasury.
Answer: A
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Market power in the United States causes a huge loss of economic efficiency
Indicate whether the statement is true or false
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A. will choose Option 1. C. is indifferent between the two. D. will choose Option 1 or Option 2 with equal probability.
Government vouchers to purchase food, also known as food stamps, are an example of
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