A central bank can help stop a bank panic by
A) calling in consumer loans. B) raising the required reserve ratio.
C) acting as a lender of last resort. D) decreasing income taxes.
C
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The normal life cycle pattern of income
a. contributes to more inequality in the distribution of annual income and to more inequality in living standards. b. contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. c. contributes to less inequality in the distribution of annual income and to less inequality in living standards. d. has no effect on either the distribution of annual income or on living standards.
According to Baumol and Blinder, the lag between the time a policy is implemented and the time it affects aggregate demand is
A. longer for fiscal policy than monetary policy. B. longer for monetary policy than fiscal policy. C. approximately equal for both. D. influenced mainly by the size of the multiplier.