If there was only full-reserve banking:
A. the financial system would work better.
B. absolutely no lending using deposits would be able to occur.
C. banks would make more money lending deposits.
D. The money multiplier would be at maximum.
B. absolutely no lending using deposits would be able to occur.
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_____ a cornerstone of the market economy
a. Mutually beneficial exchange is b. A strong central bank c. Monopoly rents are d. Government regulation is
An externality is a situation in which
A) private costs diverge from social costs. B) internal costs diverge from private costs. C) there are no social costs. D) the cost borne by the consumer is greater than the monetary price.
An export subsidy is a payment by the government to exporters to permit them to charge lower prices.
Answer the following statement true (T) or false (F)
For interest rates to remain stable during economic expansions, the money supply should: a. decrease at a faster rate than the demand for money. b. grow at the same rate as money demand
c. grow at a faster rate than money demand. d. grow at a slower rate than money demand. e. decrease at a slower rate than the demand for money.