Prior to the establishment of the Federal Reserve System (1913), reserve requirements
(a) limited the banks' ability to lend.
(b) did not restrict the amount of paper-money issued by banks.
(c) freed banks to create as much money as the market could bear without regard for risk and withdrawal rates.
(d) forced banks to place deposits in the national bank.
(a)
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When society produces the combination of goods and services on the PPF that it values the most highly, society has
A) achieved only production efficiency and definitely not allocative efficiency. B) achieved only allocative efficiency definitely not production efficiency. C) achieved both production efficiency and allocative efficiency. D) achieved a free lunch. E) perhaps achieved production efficiency and has perhaps achieved allocative efficiency.
Stable money and prices are a key source of economic growth because
a. they allow activist policymakers to fine tune the economy. b. uncertainty and instability in prices will attract investors and business decision makers. c. price instability increases capital formation. d. price stability reduces the risks that accompany investment and other long-term commitments.