In the United States (and in this course), financial institutions' reserves include:
a. Cash in the vault and deposits at other institutions.
b. Cash in the vault and deposits at the central bank.
c. Cash in the vault and AAA corporate securities.
d. Currency in circulation and checking accounts.
e. Short-term Treasury bills and government deposits are institutions'.
.B
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If you are running a winery and you need one bottle for every 750ml of wine, then your production function
A) is inefficient. B) is considered "fixed-proportion." C) will have a diminishing marginal rate of technical substitution. D) has downward-sloping, straight line isoquants.
The major impact unemployment insurance has on the U.S. economy is that it
A. incentivizes people to work. B. spreads the cost of unemployment. C. eliminates the social cost of job loss. D. prevents the emotional impact of job loss.