A decrease in the excess reserves banks want to hold, together with people taking currency out of their demand deposit accounts, would:
a. increase the money supply
b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.
d
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Explain the equity-efficiency trade-off. Give an example of conflicting equity and efficiency outcomes of a policy
What will be an ideal response?
Which of the following is the clearest evidence of employment discrimination against minority employees?
a. The average wages of minority workers are lower than the average wages of whites. b. The average wages of minority employees are lower than the average wages of whites with similar productivity characteristics. c. The mean number of years of schooling of minority workers is lower than that of whites. d. The average hours worked by minority employees exceeds the hours worked by whites.