With fractional reserve banking
A. banks can act as securities brokers.
B. banks retain only a portion of their deposits in their vaults or at Federal Reserve banks.
C. banks can not generate profits.
D. monetary policy will be ineffective.
Answer: B
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A principle that economists emphasize is that the ____ of decision makers are always limited.
A. ideas B. goals C. resources D. opportunities E. offices
In the dynamic aggregated demand and aggregate supply model, if AD shifts faster than AS,
A) deflation occurs. B) stagflation occurs. C) inflation occurs. D) disinflation occurs.
If a lower exchange rate spurs exports then why wouldn't it be a good idea of policymakers to intervene to push the exchange rate as low as they can?
What will be an ideal response?
If the government levies a $5 tax per MP3 player on buyers of MP3 players, then the price paid by buyers of MP3 players would likely
a. increase by more than $5. b. increase by exactly $5. c. increase by less than $5. d. decrease.