The slope of the consumption function:
A. is horizontal.
B. equals 1.
C. equals the marginal propensity to consume.
D. is vertical.
Answer: C
Economics
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The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
Economics
When a bank receives a check drawn on an account from another commercial bank, the bank gains
A) capital equal to the amount of the check. B) capital equal to the required reserve ratio times the amount of the check. C) reserves equal to the amount of the check. D) reserves equal to the required reserve ratio times the amount of the check.
Economics