A lender of the last resort refers to
A) a role of the central bank to prevent bank runs for temporary problems of liquidity.
B) a role for the government to ensure that the central bank has adequate reserves.
C) a reason for regulating banks.
D) the need for market based regulations in the banking industry.
A
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With a good on each axis, the production possibilities frontier is downward-sloping, which suggests
A) there is no limit to the amount of each good that can be produced. B) the production of one good ultimately means sacrificing production of the other. C) there are no opportunity costs of producing either of the goods. D) All of the above are true.
The Employment Act of 1946 states that
a. the Fed should use monetary policy only to control the rate of inflation. b. the government should promote full employment and production. c. the government should periodically increase the minimum wage and unemployment insurance benefits. d. All of the above are correct.