The balance sheet of a depository institution lists:

a. loans to private individuals as assets.
b. excess reserves as liabilities.
c. checkable deposits as liabilities.
d. required reserves as liabilities.
e. loans from the central bank as assets.

c

Economics

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If you believe that expectations react slowly, you are likely:

a. a believer in rational expectations b. a Keynesian c. a theoretical economist d. None of these.

Economics

The strongest case for government with respect to a negative externality is that government needs to set the

A) subsidy equal to the marginal private benefits. B) tax equal to the marginal external costs plus $1. C) tax slightly below the marginal external costs. D) tax equal to the marginal external costs. E) subsidy equal to the marginal social benefits.

Economics