A central bank can help stop a bank panic by
A) raising the required reserve ratio.
B) calling in consumer loans.
C) acting as a lender of last resort.
D) decreasing income taxes.
Answer: C
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Consider a consumer with a choice set that emerges from an exogenous income I. Suppose that, as a result of changes in a consumer's economic circumstances, the budget line rotates outward, with the vertical intercept remaining unchanged but the horizontal intercept shifting to the right. How could this have happened if the price of the good on the horizontal axis did not change?
What will be an ideal response?
When firms exit a perfectly competitive industry, the market supply curve shifts to the left
Indicate whether the statement is true or false
Management needs more _________ who participate in community action programs and families, contribute to scientific, social or economic advances and improve human lives
a. Followers b. Leaders c. Social workers d. Muckrakers
If production involves constant opportunity cost, the production possibilities curve
a. is "bowed inward." b. is a straight line. c. is "bowed outward." d. is a wavy line. e. has an unpredictable shape.