A system that permits banks to hold less than 100 percent of their deposits as reserves is called a
a. federal reserve system.
b. fractional reserve banking system.
c. partially funded deposit insurance system.
d. gold standard banking system.
B
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If the cross-price elasticity of demand between two goods is positive, we can assume that the two goods in question are:
A) complements. B) substitutes. C) inferior goods. D) totally unrelated to one another.
A competitive firm maximizes profit at an output level of 500 units, market price is $24, and ATC is $24.50. At what range of AVC values for an output level of 500 would the firm choose not to shut down?
a. AVC > $24 b. AVC = $24 c. AVC < $24 d. cannot be determined from the given information
With inflation of 5 percent, real GDP growth of 3 percent, and an outstanding national debt of $3400 billion, the "allowable deficit" that holds the debt-GDP ratio constant is
A) $272 billion. B) $68 billion. C) $170 billion. D) $175.1 billion. E) $510 billion.
Graphically illustrate and explain the effects of an increase in the saving rate on the Solow growth model. In your graph, clearly label all curves and equilibria
What will be an ideal response?