Under the system of fractional reserve banking, the reserve requirement is the ratio of excess reserves to total reserves
a. True
b. False
Indicate whether the statement is true or false
False
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An example of a government policy to increase human capital formation is:
A. the provision of publicly-funded education. B. the construction of an interstate highway system. C. government support for basic research. D. maintaining a well-functioning legal system.
Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is TRUE?
A) Rogue's marginal product curve initially increases and then decreases. B) Rogue's marginal product curve decreases continually. C) Rogue's total product curve increases at an increasing rate. D) Rogue's marginal product curve decreases initially and then increases.
A risk averse individual
a. values a lottery at more than its expected value b. values a lottery at exactly its expected value c. values a lottery at less than its expected value d. tends to play lots of lotteries
Decisions regarding purchases and sales of government securities by the Fed are made by the:
a. Federal Funds Committee. b. Discount Committee. c. Federal Open Market Committee. d. FDIC.