Excess reserves are important to a banker because
A. if they are not maintained, banking regulators may shut the bank down.
B. they are the profits that are divided among the bank's owners.
C. they represent the funds available to use to acquire income-producing assets such as loans and securities.
D. they indicate profitable banking practices.
C. they represent the funds available to use to acquire income-producing assets such as loans and securities.
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According to Keynesian theory, the most important determinant of saving and consumption is
A) the stock of durable goods in the consumer's possession. B) the stock of liquid assets. C) the level of real disposable income. D) the level of consumer indebtedness.
The more block prices a monopoly can set instead of setting a single price, the
A) smaller the deadweight loss. B) the more producer surplus. C) the larger the total welfare. D) All of the above.
Suppose a vote was taken in a small town of 11 people to determine how much of the budget should go toward education spending. Five individuals want 10 percent, five individuals want 80 percent and one person wants 25 percent. According to the median-voter theorem, the chosen amount to spend on education will be ______ of the budget.
A. 10 % B. 80 % C. 45 % D. 25%
Government outlays consist of
a. all governmental purchases resulting from contracts with the private sector and foreign organizations b. government purchases, transfer payments, and interest on the national debt c. any purchase by an organization that is not trying to earn a profit d. government purchases and transfer payments minus the interest on the national debt e. total receipts from all organizations doing business with any level of government