If banks engage in fractional reserve banking, it means that
A) they hold less than 100 percent of their deposits as reserves.
B) they do not hold any excess reserves.
C) a fraction of their legal reserves are held as top-grade government securities.
D) they never run short of currency.
A
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Indicate whether the statement is true or false
A change in the price of one good cannot leave utility unchanged unless the price change is accompanies by a change in income.
Answer the following statement true (T) or false (F)
An increase in foreign investment in Brazil's mining industry will increase the capital stock in Brazil. All else equal, as the capital stock increases, the marginal product of capital (MPK) will
A) increase due to diminishing marginal returns. B) decrease due to diminishing marginal returns. C) increase since capital is not subject to diminishing marginal returns. D) decrease since capital is not subject to diminishing marginal returns.
Costs of unemployment include
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