A good economic theory:
a. includes every detail that affects the economic behavior of interest
b. relies on simplifying assumptions in order to explain economic behavior.
c. does not rely on simplifying assumptions.
d. is impossible to achieve because of the difficulty of conducting controlled experiments.
b
Economics
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Which of the following Federal Reserve Banks carries out the decisions of the FOMC?
A) the Kansas City Federal Reserve Bank B) the New York Federal Reserve Bank C) the Dallas Federal Reserve Bank D) the San Francisco Federal Reserve Bank E) the Atlanta Federal Reserve Bank
Economics
Assume that the required reserve ratio is 10%. An increase of $1,000 in the banking system's excess reserves may result in a total expansion of new deposits for the banking system as a whole by as much as
A) $1,000. B) $9,000. C) $10,000. D) $100,000.
Economics