A liquid trap can be avoided if the central bank:
A. charges banks fees for keeping reserves.
B. pays interest on bank deposits at banks.
C. pays interest on reserves.
D. charges banks fees for making loans.
Answer: C
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A firm's total product curve shows
A) that inefficiency is not possible. B) how the cost of the fixed resources change when output changes. C) how the amount of output changes when the quantity of labor changes. D) that in the long run the firm must adjust the quantity of all the resources it employs.
Which of the following strategies are adopted by a business tycoon when the first new management of the purchased company fails?
a. He tries a second management team. b. He tries to train and motivate the existing management team. c. He sells off part of the company in the market. d. He tries to reduce the cost of production by lowering output.
There are many corn farmers, each of whom produces the same product. The corn market can best be classified as
A. Monopoly. B. Monopolistic competition. C. Perfect competition. D. Oligopoly.
One opportunity cost associated with going to college is
A) purchasing text books. B) paying tuition. C) giving up employment possibilities while in college. D) paying for room, board, and other living expenses.