Banks create money when they:
A. allow loans to mature.
B. accept deposits of cash.
C. buy government bonds from households.
D. sell government bonds to households.
C. buy government bonds from households.
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Which of the following examples best describes the concept of free entry?
A) Jack has an old cell phone that he wants to sell. He opens an account on eBay and auctions it off. B) Purecircuit Cor
In "real business cycle" theory, as opposed to "traditional business cycle" theory, the govern- ment is viewed as an instrument to correct unevenness in economic growth caused by cycles
Indicate whether the statement is true or false
Central banks in developing countries:
A. monetize government debt to a much greater degree than developed countries. B. monetize government debt to roughly the same extent as developed countries. C. monetize government debt, but in a more limited manner than developed countries. D. do not monetize government debt.
Refer to the consumption schedule above. Disposable income equals consumption at point:
A. A
B. C
C. D
D. G