A bank is reserve deficient when
A) its reserves fall short of the level determined by the required reserve ratio.
B) its excess reserves are greater than its required reserves.
C) its required reserves are greater than its excess reserves.
D) it purchases government securities from the Fed.
A
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Tariffs create deadweight losses and destroy wealth, whereas quotas increase cooperative surplus and create wealth
Indicate whether the statement is true or false
Which of the following statements about the importance of trade to the U.S. economy is true?
A) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports. B) The United States is the second largest exporter in the world. C) The U.S. economy is highly dependent on international trade for growth in its gross domestic product. D) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.
Estimates of the values of which of the following non-market goods or services are included in GDP?
a. the value of unpaid housework b. the value of services provided by major household appliances purchased in a previous period c. the estimated rental value of owner-occupied homes d. All of the above are included in GDP.
Causality is clear and mechanical with the quantity theory of money. If M increases because:
A. V and Q are variable, the price level, P, increases. B. V and Q are variable, the price level, P, decreases. C. V and Q are constant, the price level, P, increases. D. V and Q are constant, the price level, P, decreases.