A bank's reserves:
A. are the sum of its excess and required reserves.
B. can be held as cash in its vault.
C. can be held as deposits with the Federal Reserve.
D. All of these
Answer: D
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According to this Application, real GDP only grew by ________ percent from the end of the recession in 2009 through 2014
A) 2.0 B) 5.4 C) 10.8 D) 15.0
The Fed raises the interest rate when it
A) fears recession. B) wants to increase the quantity of money. C) fears inflation. D) wants to encourage bank lending. E) cannot change the quantity of money.
The quantity theory of money states that increases in the money supply result in proportional increases in real GDP
a. True b. False Indicate whether the statement is true or false
The government intervenes in the economy to protect labor by
A. Ensuring minimum wages in addition to overtime provisions. B. Ensuring workplace safety conditions. C. Enforcing child labor laws to prevent child exploitation. D. All of the choices are correct.