(Consider This) During and immediately following the severe recession of 2007-2009, on the consolidated balance sheet of the 12 Federal Reserve Banks:
A. commercial bank reserves grew significantly because the Fed increased the required
reserve ratio.
B. liabilities fell significantly as commercial banks drained reserve accounts to meet their own
deposit liabilities.
C. assets fell significantly as a result of heavy withdrawals from commercial banks.
D. assets grew significantly from Fed purchases of securities from financial institutions.
D. assets grew significantly from Fed purchases of securities from financial institutions.
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A competitive market is one:
A) that operates with little or no government control. B) where almost all exchanges take place involuntarily. C) that has price controls imposed by a ruling authority. D) where determination of equilibrium quantity need not rely on the forces of demand and supply.
If an economy produces final output worth $5 trillion, then the aggregate income generated by that production: a. will be $5 trillion
b. will be more than $5 trillion. c. will be $5 trillion minus taxes. d. will be less than $5 trillion. e. will be $5 trillion plus transaction costs.