Ceteris paribus, if the Fed raises the discount rate, then:
A. The money multiplier decreases.
B. The lending capacity of the banking system increases.
C. Excess reserves decrease.
D. The incentive to borrow reserves decreases.
A. The money multiplier decreases.
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When competing power blocs exist within an oligopolistic industry,
a. concentration ratios are low b. the laissez-faire approach can be justified c. prices are higher than under monopoly d. nationalization is necessary e. contestable markets exist by definition
A bank run is:
A. the situation that arises from fear that the bank is in danger of running out of money. B. when a bank's reserves are not enough to satisfy all withdrawal demands. C. when all depositors from a single bank demand to withdraw all deposits at once. D. All of these are true.