Refer to Scenario 17.5. The owners can't know whether the workers are exerting high or low effort if income is

To maximize its profit, a bank will: a. minimize the number transactions it engages in. b. maximize required reserves

c. minimize excess reserves. d. maximize excess reserves. e. minimize required reserves.

The classical model is one of the best that economists have for capturing the rapidly changing nature of the supply and demand for labor and ultimately for explaining recessions

a. True b. False