Identify the correct statement
a. District banks of the Fed hold reserves in the form of deposits at the Fed.
b. Commercial banks in each district make loans to the Fed.
c. The Fed sells U.S. government securities for the U.S. Treasury.
d. The district banks of the Fed print money and supply currency to the Fed.
e. The Fed holds the reserves of the commercial banks but it does not issues checks.
c
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The extent to which a given change in investment affects aggregate demand depends:
a. on the change in interest rate. b. on the size of the spending multiplier. c. on the change in money supply. d. on the change in investment.
The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. The rest of the world has an absolute advantage in the production of ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. only corn. B. neither corn nor umbrellas. C. only umbrellas. D. both goods.