Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to
a. create insufficient money when the economy is at full employment
b. create too much money when the economy is in a recession
c. forego money creation opportunities when the economy is at full employment
d. hold less deposits than socially desirable when the economy is at full employment
e. hold more excess reserves than socially desirable when the economy is in a recession
E
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Why has the cartel in diary farming not been broken up?
a. Organized crime is used to enforce a dairy compact. b. The dairy industry is exempt from anti-trust laws. c. Consumers do not mind paying higher prices for milk. d. Economic studies indicate that to do so would decrease efficiency.
Which of the following can result in a market producing an inefficient quantity of a good? i. competition ii. an external cost or an external benefit iii. a tax
A) i only B) iii only C) ii only D) ii and iii E) i and iii
A resource price taker's resource demand curve is
a. horizontal b. the same as its marginal resource cost curve c. the same as its marginal revenue product curve d. the same as its marginal product curve e. the same as its average variable cost curve
Each of the following was considered a proponent of supply-side economics EXCEPT
A. Arthur Laffer. B. Ronald Reagan. C. Congressman Jack Kemp. D. Milton Friedman.