In order to meet a deficiency of required reserves, a bank could:
a. buy securities
b. deposit vault cash with the Fed.
c. turn some of its deposits at the Fed into cash.
d. close some checking accounts.
e. borrow from another bank in the federal funds market.
e
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If Americans became more pessimistic about the economy, what would happen to the consumption-income line?
a. A rightward movement along the line b. A leftward movement along the line c. The entire line would shift upward d. The entire line would shift downward e. The entire line would shift downward and there would be a rightward movement along the new line
All of the following are examples of negative externalities except
a. getting the flu vaccine. b. smoking in a crowded bar. c. driving while intoxicated. d. littering in the park. e. pouring paint down the storm drains.
Businesses often reduce the number of products to produce faster and better
a. True b. False Indicate whether the statement is true or false
The US government sets the poverty line equal to approximately
a. three times the cost of providing subsidized housing. b. three times the cost of providing an adequate diet. c. the minimum wage for a single person working 40 hours per week and 50 weeks per year. d. the cost of providing food, shelter, and health care expenses for a family of four.