Financial panics characterized by depositor "runs" and consequent bank failures have not occurred in the United States since the 1930s primarily because
A) commercial banks now hold larger reserves.
B) the Federal Deposit Insurance Corporation has reduced the fears of depositors.
C) we have abandoned the gold standard.
D) we have had no major recessions since the 1930s.
B
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According to the quantity theory of money, in the long run, an increase in the quantity of money results in an equal percentage increase in ________
A) the price level B) the growth rate of real GDP C) the inflation level D) the growth rate of potential GDP
"The standard of living is too low for many individuals in the United States. The government should implement policies designed to achieve a more equal distribution of income." The preceding statements are
a. positive economic statements based on cause and effect. b. normative economic statements based on value judgments. c. based on the fallacy of composition argument. d. an empirically validated economic principle.
In recent years, the largest trading partners of the United States have been
What will be an ideal response?
Refer to the following graph.
This set of cost curves is:
A. wrong because the total cost and variable cost curves are reversed. B. wrong because the total cost and variable cost curves are actually the average total cost and average variable cost curves. C. wrong because the fixed cost curve is drawn incorrectly. D. correct.