If the economy were producing at point F,
A. it would not be using its resources efficiently.
B. it would be in a recession.
C. it could gain units of guns without having to sacrifice units of butter.
D. it would specializing exclusively in butter production.
D. it would specializing exclusively in butter production.
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Why does the Fed have imperfect control over the money supply?
A. Because the Fed does not know how much reserves will change when it buys or sells securities. B. Because of unpredictable changes in the public’s desire to hold cash and banks’ desires to hold reserves. C. Because of unpredictable changes in reserve requirements. D. Because of the secrecy of FOMC meetings, which lead to policy surprises.
Which of the following lends reserves to private banks?
A. The Legislative Branch of government B. Comptroller of the Currency C. State banking commissions D. The Federal Reserve System
In the 19th century, when crop failures often led to bank runs, banks would make relatively fewer loans and hold relatively more excess reserves. By itself, these actions by the banks should have
a. increased the money multiplier and the money supply. b. decreased the money multiplier and increased the money supply. c. increased the money multiplier and decreased the money supply. d. decreased both the money multiplier and the money supply.
A carbon tax would increase the total volume of greenhouse gases.
Answer the following statement true (T) or false (F)