U.S. reserve requirements
A) are rejected by half the banks operating in the United States.
B) show how regulatory asymmetries can operate to enhance the profitability of Eurocurrency trading.
C) tend to harm the bank's business and decrease monetary aggregates.
D) force banks to hold a portion of its assets in a liquid form easily mobilized to meet sudden deposit outflows.
E) remain in place, but capital requirements have begin defaulting.
D
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In the 1980s national savings declined as a percentage of GDP. Assuming that domestic private investment's percentage share has not declined, this situation requires, ceteris paribus,
A) net foreign investment (NX) to decrease. B) net foreign investment (NX) to increase. C) U.S. exports to decrease. D) A and C are both necessary outcomes.
Since the Internet became a common tool for business, employees at Plain Truth Advertising have maintained a semi-secret website where wages of employees are published and comparative salaries of friends at other advertising agencies are also published. Employees at Plain Truth have noticed that wage dispersion of similarly ranked employees has shrunk dramatically in the past five years. What happened?
What will be an ideal response?
In the real world, we should expect the multiplier process to work itself out
A) almost instantaneously. B) within a few days. C) within about one month. D) over many months, perhaps even years.
Over many years the capital stock in the United States has grown to approximately
A. $40 trillion. B. $90 trillion. C. $20 trillion. D. $80 trillion.