Which one of the following is presently a major deterrent to bank panics in the United States?
A. The legal reserve requirement
B. The fractional reserve system
C. The gold standard
D. FDIC insurance
D. FDIC insurance
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Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The GDP Price Index rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The GDP Price Index and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below.Hours in East OrchardNumber of Apples Per HourHours in West OrchardNumber of Apples Per Hour140110232210325310420410 What is the opportunity cost to Frank of spending an additional hour picking apples in the East orchard?
A. 40 apples B. 30 apples C. 20 apples D. 10 apples
Which of the following is included in M2?
A. commercial paper B. savings accounts C. U.S. Treasury bonds D. stocks
The relationship between the rate of saving and per capita real GDP is
A) positive. B) negative. C) constant. D) not stable.