Which of the following statements about reserves is correct?
a. When an economy is in recession, banks are likely to hold a higher proportion of reserves.
b. When an economy is in recession, banks are likely to hold a lower proportion of reserves.
c. When an economy is in recession, banks are likely to hold the same proportion of reserves.
d. When an economy is in recession, banks are likely to hold no reserves.
a. When an economy is in recession, banks are likely to hold a higher proportion of reserves.
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United States net unilateral transfers have been
a. positive every year since 1950 b. negative every year since 1950 c. positive every year since 1950 except 1991, during the Persian Gulf War d. negative every year since 1950 except 1991, during the Persian Gulf War e. positive about half the time and negative about half the time since 1950
If the Fed fears an economic downturn, it would be most likely to
a. encourage banks to provide loans by lowering the discount rate. b. encourage banks to provide loans by raising the discount rate. c. restrict bank lending by lowering the discount rate. d. restrict bank lending by raising the discount rate. e. restrict bank lending by lowering the federal funds rate.
Over the past century, the growth rate of real GDP in the United States has averaged approximately
a. 1 percent. b. 3 percent. c. 6 percent. d. 10 percent.
Which statement is true?
A. Today more workers in the U.S. are members of labor unions than any time in our history. B. Today labor unions are weaker than any time in the last 100 years. C. No major labor union has called a strike since the 1940s. D. Labor unions are relatively strong in the public (government) sector.