Because of the history of banking panics in the U.S., one of the Fed's primary functions is to
a. dispel rumors about bank problems
b. act as a lender of last resort
c. hold banks accountable for their actions
d. call in loans
e. increase the profit that each bank makes
B
You might also like to view...
If the corn industry is perfectly competitive, ________ for corn is downward sloping and ________ is horizontal.
A. marginal revenue curve; average total cost curve B. the marginal cost curve; the marginal revenue curve C. an individual corn producer's demand curve; the marginal revenue curve D. the market demand curve; an individual corn producer's demand curve
The force that leads to zero economic profits for monopolistically competitive firms in the long run is
a. excess capacity. b. price wars among firms. c. entry by new firms. d. excessive advertising.
In order for money to be an effective medium of exchange, it is important to have it serve as a unit of account.
Answer the following statement true (T) or false (F)
One part of the supply-side argument is that
A. lower marginal tax rates can increase total tax revenues. B. the relevant aggregate supply curve is close to horizontal. C. lower marginal tax rates are required to induce Congress to reduce government spending. D. the marginal tax rate should be set at 50 percent.