A clause in a contract that automatically increases wages to account for increases in the price level is

A. a COLA.
B. the GDP deflation.
C. the PCE index.
D. the real rate of interest.

Answer: A

Economics

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In what way are the 12 Federal Reserve Banks considered “quasi-banks”?

What will be an ideal response?

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Suppose the money multiplier is 5. If banks hold excess reserves, the required reserve ratio must:

A. equal 0.20. B. be less than 0.10. C. be greater than 0.20. D. be less than 0.20.

Economics