The Fed controls the money supply in the U.S. economy largely through its ability to influence bank reserves and the money creating power of commercial banks
a. True
b. False
Indicate whether the statement is true or false
True
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Assume that the cost of producing a hardback book is roughly equivalent to producing a paperback book. Explain how and why then do publishing companies charge higher prices for the hardback book and a much lower price for the paperback book
What will be an ideal response?
In a market where the equilibrium price is $7, any price lower than $7 would cause
a. a balanced demand and supply b. an excess supply c. an excess demand d. none of the above
When governments specify the maximum amount of a good that may be imported in a given period of time, they are establishing a
A) tariff. B) quota. C) dynamic tariff. D) tax. E) dumping limit.
Most state governments in the United States operate under constitutional provisions that severely restrict expenditures financed by borrowing
Suppose this were to change, so that state governments' access to credit markets was no different from the federal government. What consequences would you predict for the nation's aggregate debt burden?