What issues in U.S. banking precipitated the creation of the Federal Reserve System in 1913?
What will be an ideal response?
Before the creation of the Fed, banking was decentralized, unregulated and not standardized. Private banks each had their own notes that could be used as currency and the money supply was mismanaged. In 1907, there was also a banking crisis and as a result Congress created the National Monetary Commission, which in turn created the Federal Reserve.
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Consider the IS-LM curves for an economy with flexible exchange rates. An increase in the foreign income will result in the:
A) LM curve shifting to the right. B) IS curve shifting to the right. C) LM curve shifting to the left. D) IS curve shifting to the left.
Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's minimum efficient scale is
A) 2,650 copies per day. B) 6,000 copies per day. C) 4,000 copies per day. D) More information is needed to determine the minimum efficient scale.