By lowering the legal reserve requirement, the Federal Reserve System forces banks to hold repaid loans as required reserves instead of lending the funds again
Indicate whether the statement is true or false
F
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An economic system
a. must answer the three economic questions to the satisfaction of everyone in society b. must not allow some members of society to gain an unfair advantage when answering the three economic questions c. must choose pure capitalism to adequately answer the three economic questions d. is a set of social institutions and mechanisms organized to answer the three economic questions e. can address problems of scarcity only by embracing the social institution of private property
Figure 11-2
?
In Figure 11-2, which movement would represent an improvement for all individuals?
A. A to B B. C to AC C. D to B D. A to D
Economists agree that large firms with big research budgets create most of the economy's technological progress
Indicate whether the statement is true or false
Which of the following statements is not correct?
a. An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus. b. Market power can cause markets to be inefficient. c. Externalities can cause markets to be inefficient. d. The invisible hand can remedy all types of market failures.