Fractional reserve banking refers to a system in which the depository institution
A) holds reserves equal to its deposits.
B) holds reserves greater than its deposits.
C) holds reserves less than its deposits.
D) holds zero reserves.
C
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Since World War II, the U.S. economy has been characterized by
a. extremely high rates of inflation b. decreases in the price level c. ongoing inflation d. zero inflation e. a continually falling rate of inflation
A tariff, unlike a __________, provides revenues to the government.
Fill in the blank(s) with the appropriate word(s).
When marginal revenue is positive,
A. marginal revenue is greater than price. B. demand is elastic. C. decreasing price will decrease total revenue. D. both b and c E. all of the above
Which of the following is not a problem in the People's Republic of China following the economy's rapid growth?
A. income inequality B. labor issues C. lack of potential for foreign trade because of China's comparative advantage in the production of all goods D. pollution