The primary purpose of the legal reserve requirement is to:
A. prevent banks from hoarding too much vault cash.
B. provide a means by which the monetary authorities can influence the lending ability of
commercial banks.
C. prevent commercial banks from earning excess profits.
D. provide a dependable source of interest income for commercial banks.
B. provide a means by which the monetary authorities can influence the lending ability of
commercial banks.
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The key variable in determining changes in a country's standard of living is the:
A. inflation rate. B. interest rate. C. long-run rate of economic growth. D. unemployment rate.
Which of the following will cause the largest reduction in the birthrate?
(a) the population becomes less religious (b) public healthcare improves (c) education becomes more available (d) an increase in the opportunity cost of a woman's time
The purchasing power of one dollar is equal to _____
a. real GDP divided by nominal GDP b. nominal GDP divided by real GDP c. 1 minus the average price level d. the reciprocal of the average price level e. the implicit GDP deflator divided by the CPI
Which of the following is NOT true of GDP?
A. Total production of new goods and services B. Includes real and financial assets C. Includes expenditures on goods and services D. Includes incomes produced in production