If commercial banks hold all their assets in the form of required reserves:
A. only they will be able to create money.
B. no one will be able to create money.
C. both commercial banks and the central bank will be able to create money.
D. only the central bank will be able to create money.
Answer: D
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If aggregate demand increases, thereby leading to an increase in real GDP and inflation, there is
A) a leftward shift in the short-run Phillips curve. B) a movement downward along the short-run Phillips curve. C) a movement upward along the short-run Phillips curve. D) a rightward shift in the short-run Phillips curve. E) neither a movement along nor a shift in the short-run Phillips curve.
In the above figure, while moving along the line showing the relationship between household income and expenditure
A) household expenditures are held constant. B) household income is held constant. C) the interest rate is held constant. D) no variable is held constant.
Using the fact that the standardized variable Z is a linear transformation of the normally distributed random variable Y, derive the expected value and variance of Z
What will be an ideal response?
The theory of consumer choice illustrates that people face tradeoffs, which is one of the Ten Principles of Economics
a. True b. False Indicate whether the statement is true or false