The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?
A) regulator of the banking system
B) lender of last resort
C) manage the exchange rate
D) maintain a balanced budget
B
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A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced
A) linear B) bowed outward C) bowed inward D) perfectly horizontal
In analyzing the operation of a firm, an economist assumes the firm wants to
A) maximize total sales. B) maximize total revenue. C) maximize total production. D) maximize total profits.
Which of the following will limit the money creation process to an amount less than the potential amount?
a. bank pursuit of profits b. increase in currency holdings by the public c. business demand for loans d. increased use of credit cards
Refer to Exhibit 6-2. The employment rate in year 2 is
a. 12 1/2 percent. b. 75 percent. c. 87 1/2 percent. d. 30 percent. e. 50 percent.