As a "lender of last resort," the Fed
A. provides loans to banks experiencing temporary liquidity problems.
B. is obligated to bail out any depository institution in the country that is in financial difficulty.
C. protects the deposits of $100,000 or less in all commercial banks in the country.
D. bails out any corporation the government has decided should not fail.
Answer: A
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Demand: QD = 100 - 2p Supply: QS = 3p If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction is paid by sellers?
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Bethany notices that whenever she receives a text message, her roommate Stella is playing her tuba. She concludes that Stella's tuba playing is causing her to receive text messages. Bethany is
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