When banks hold excess reserves because they don't see good lending opportunities, _____
a. contractionary monetary policy is negatively affected
b. expansionary monetary policy is negatively affected
c. expansionary monetary policy is unaffected
d. contractionary monetary policy is unaffected
b
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The importance of international trade in the U.S. economy
A) has been decreasing and is expected to continue to decrease. B) has been decreasing but is expected to start to increase. C) has been increasing and is expected to continue to increase. D) has been increasing but is expected to decrease in the future.
Which of the following is true?
a. There is a fixed size of economic pie available for the government to allocate among individuals. b. In a market economy, the link between productivity and income provides individuals with an incentive to provide resources that are highly valued by others. c. Taxes and transfers do not affect the amount of income that is created. d. How income is distributed exerts little impact on the total amount of income generated.