The fallacy of composition is the error of believing a cause-effect relationship exists between two events that are associated in time

The primary function of reserve requirements is to serve as

A) a source of bank liquidity. B) an instrument of monetary control. C) a means of reducing bank profits. D) a means of controlling the amount of currency in the banking system.

If British tastes changed so that Britons began to desire more American goods, there would be

a. a rightward movement along the supply of British pounds curve in the dollar-pound market b. a leftward movement along the supply of British pounds curve in the dollar-pound market c. a rightward shift of the supply of British pounds curve in the dollar-pound market d. a leftward shift of the supply of British pounds curve in the dollar-pound market e. no change in the supply of British pounds curve in the dollar-pound market