Lowering the reserve ratio:
A. Increases the total reserves in the banking system
B. Also reduces the discount rate
C. Turns required reserves into excess reserves
D. Reduces the amount of excess reserves the banks keep
C. Turns required reserves into excess reserves
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Parents who do not have their children immunized and attempt to benefit from other parents who did have their own children immunized are exhibiting an economic behavior known as
A) excludability. B) public rivalry. C) internalizing an external cost. D) free riding.
Mismatch and turnover unemployment, while conceptually easy to distinguish, are often difficult to identify. Ceteris paribus, a person out of work for six months or an extended period would be classified by Gordon as
A) experiencing turnover unemployment. B) experiencing mismatch unemployment. C) impossible to distinguish the type. D) first frictionally unemployed (the first month) and then structurally unemployed.
The money supply contracts when the Fed: a. replaces worn and ripped Federal Reserve notes. b. sells government securities
c. borrows from the U.S. Treasury. d. purchases equities in major U.S. corporations.
A shift in the demand curve means which of the following?
a) a change in demand at every price b) a rise in prices c) a decrease in both price and quantity demanded d) a change in consumer income