The most effective mechanism for reducing runs on banks is _____
a. the discount rate
b. deposit insurance
c. the reserve requirement
d. open-market operations
e. the Federal Reserve note
b
Economics
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An example of an automatic stabilizer is
a. unemployment benefits. b. a lowering of interest rates by the Fed. c. a decrease in money demand. d. a decrease in tax rates in response to a recession.
Economics
The reason why inflation reduces the value of the multiplier is that part of the change in demand is
A. absorbed by price changes. B. saved rather than spent. C. matched by changes in supply. D. matched by changes in income.
Economics