When the discount rates fall, the cost:
a. of loans to bankers' best customers goes down.
b. of loans between banks falls.
c. of international loans falls.
d. to banks of borrowing from the Fed falls.
e. to savings and loans of borrowing money from the public falls.
d
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During an economic boom, output exceeds potential output
Indicate whether the statement is true or false
How can a new deposit of $10,000 at one bank create other new deposits at other banks? Suppose the desired reserve ratio is 10 percent and people keep no currency outside of the banks
What will be the new amount of deposits in the second and third rounds?
Which of the following is not equal to the others in equilibrium?
A) the real wage B) the marginal rate of substitution between leisure and consumption C) the marginal product of labor D) the price of consumption
Which of the following is most likely to encourage economic growth?
a. stable private property rights b. an extensive welfare system c. frequent military take-overs of the government d. a shrinking labor force e. a fixed capital stock