Fractional reserve banking refers to a banking system in which
A) bank deposits are less than bank reserves.
B) bank reserves are only a fraction of total deposits.
C) bank reserves are only a fraction of required reserves.
D) bank loans are less than bank reserves.
B
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Most economists believe that changes in the price level have
A) no effect on the quantity of output supplied in either the short run or the long run. B) an effect on the quantity of output supplied in the short run, but not in the long run. C) an effect on the quantity of output supplied in the long run, but not in the short run. D) an effect on the quantity of output supplied in both the short run and the long run.
Capital goods, like factories and machinery, are classified as intermediate goods
a. True b. False Indicate whether the statement is true or false