If a bank has excess reserves of $5,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of

Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this

What will be an ideal response?

Those who favor a passive approach to policy believe that:

a. discretionary monetary policy can be used to help the economy since monetary policy lags are short b. discretionary fiscal policy can be used to help the economy since fiscal policy lags are short. c. lags associated with implementing policies are too long and unstable for discretionary policy to be effective. d. despite the lags involved, implementing discretionary policy is preferable to inaction. e. automatic stabilizers cannot be used to help the economy since monetary policy lags are short.