Bank reserves divided by bank deposits is called:
A. the reserve/deposit ratio.
B. fractional reserve banking.
C. the asset/liability ratio.
D. 100% reserve banking.
Answer: A
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Steve Forbes has run for president twice on a program of a "flat tax." Under a flat tax, there would be only one tax bracket for the federal income tax and most tax deductions and tax exemptions would be eliminated
Suppose that Forbes wins the 2016 presidential election. What would be the likely impact on the market for municipal bonds?
The following is not a threat to external validity:
A) the experimental sample is not representative of the population of interest. B) the treatment being studied is not representative of the treatment that would be implemented more broadly. C) experimental participants are volunteers. D) partial compliance with the treatment protocol.
A recent study showed that an increase in the price of gasoline promoted carpooling among office commuters. If gasoline is an important component in the fixed basket of goods used to calculate the Consumer Price Index, it will fail to reflect true changes in the cost of living of an average consumer because of the: a. quality bias
b. substitution bias. c. new good bias. d. quantity bias.
The quantity theory of money implies that a 3% increase in the money supply will eventually cause
A. a 3% decrease in the unemployment rate. B. a 3% increase in disposable income. C. a 3% increase in real GDP. D. a 3% increase in the price level.