The type of banking system under which banks are required to hold only a portion of their assets in reserve against the checking deposits of their customers is called
a. a gold-backed banking system.
b. a full reserve banking system.
c. a fiat banking system.
d. a fractional reserve banking system.
D
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Refer to the figure above. If the relative price of S were to increase, then the price line would
A) shift out in a parallel fashion. B) shift in in a parallel fashion. C) become steeper. D) become flatter.
From the Civil War until 1914, what change(s) occurred in U.S. policies regarding tariffs?
(a) Tariff rates were generally higher and customs receipts were higher than before the Civil War. (b) As the momentum of the westward movement increased, increased revenues from land sales allowed Congress to return tariff rates to their pre-Civil War levels. (c) Customs revenues increased because of economic growth and the lack of important changes in tariff policy. (d) All of the above
Rick finds a great Internet deal on an all-inclusive vacation rental in the Tropics for $1200, and immediately places a $1000 nonrefundable deposit on it. He later learns that the dates he planned to go are right in the middle of hurricane season, and it is likely to be miserable and potentially dangerous weather the entire time. Rick decides he cannot waste the $1000 and takes the trip anyway. While sitting in the rain, miserable, Rick realizes he should have:
A. ignored his sunk cost of $1200 and skipped the trip. B. ignored his sunk cost of $1000, and skipped the trip. C. hired a lawyer for $1000 to go to court and try to get his deposit back. D. hired a lawyer for $1000 to sue the travel agency.
Unions are often able to sustain wages above the equilibrium wage because they can threaten to