According to Keynes, the main institutional barriers to downward wage and price flexibility were (1) _________________ and (2) ____________________.

If the desired reserve ratio increases, then

A) banks' desired reserves increase and their excess reserves decrease. B) bank customers become more willing to make deposits in banks. C) banks are able to make more loans. D) banks can buy more government securities. E) the Fed has supplied banks with more reserves.

In a market-oriented economy, the choice between the production of consumer goods and physical capital is the result of decisions made by: a. the government

b. firms and the government. c. households and firms. d. the labor force.