If there is a(n) __________ in reserves, the potential change in demand deposits is __________

A) deficiency; 0
B) deficiency; positive
C) deficiency; negative
D) excess; negative


C

Economics

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Market failures

A) prevent the price system from attaining economic efficiency. B) result in quantities and prices that are socially desirable. C) strengthen economic efficiency by forcing unprofitable firms to close. D) weaken the argument for government intervention in the economy.

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The equilibrium level of GDP is always accompanied by full employment and stable prices.

Answer the following statement true (T) or false (F)

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In the early 1990s, European unemployment rose largely because of

A) reductions in stock prices. B) undervalued currencies. C) overvalued currencies. D) high inflation. E) none of the above

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