What is a banking panic, and what role did banking panics play in the decision by Congress to establish the Federal Reserve?
What will be an ideal response?
When the Fed was founded, its primary responsibility was to make discount loans to banks in order to deal with the bank panics, which occurred when many banks suffered from large withdrawals by depositors.
Economics
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Refer to Figure 7-3. What is the reduction in value of consumer surplus after the imposition of the quota?
A) $8 million B) $26.25 million C) $27.75 million D) $30 million
Economics
When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:
A. an asset-price bubble. B. inflation. C. a recession. D. unemployment.
Economics