Banks
A. have no role in the money creation process and never have.
B. have no role in the money creation process, though they once did.
C. create money because they take deposits and make loans.
D. create money because they are the ones that print it.
Answer: C
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When an economy is at its natural rate of unemployment, which of the following will be true?
A) Only structural unemployment as a result of technological change will exist in the economy. B) The labor force participation rate will be 100%. C) The unemployment rate will be greater than 0%. D) The unemployment rate will be 0%.
Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection. b. It should help individuals to discern the information that matters for a problem. c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set. d. It should suggest accurate solutions for a problem.