Which of the following statements is correct?
A. Excess reserves may be found by subtracting actual from required reserves
B. The supply of money declines when the public purchases securities from commercial banks
C. Commercial bank reserves are a liability to commercial banks but an asset to Federal Reserve Banks
D. Commercial banks reduce the supply of money when they purchase government bonds from the public
B. The supply of money declines when the public purchases securities from commercial banks
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The difference between gross public debt and net public debt is that
A) net public debt includes interagency borrowing while the gross domestic product debt does not. B) net public debt is expressed in real terms while gross public debt is expressed in nominal terms. C) gross public debt includes interagency borrowing while net public debt does not. D) gross public debt is held by individuals while net public debt is held by the government.
If the interest rate is 10 percent and a business pays $100,000 for a lease on a factory, the explicit costs are
A) $110,000. B) $10,000. C) $100,000. D) $90,000.
A modern example of privatizing a common resource is:
A. patents. B. quotas. C. taxes. D. subsidies.
Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).Recall the Application. An increase in the production of beer resulted in the demand for hops because hops are ________ to beer.
A. inputs B. completely unrelated C. complements D. substitutes