If bank depositors in the U.S. suddenly decided to withdraw in currency everything in their checking accounts, commercial banks would
A) be better off because their legally required reserves would decline.
B) be unable to meet their demands and would become insolvent.
C) borrow the required Federal Reserve notes to meet the requests for currency.
D) give them the currency held in their vaults as backing for the checking accounts.
E) refuse to honor their requests for 30 days.
C
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In comparison to an employer in a competitive labor market, a monopsony employer pays a ________ wage rate and hires ________ workers
A) lower; fewer B) lower; more C) higher; more D) higher; fewer
One way to bring the inflation rate down is
a. to reduce excessive competition b. to increase government spending c. to aggregate across markets d. for the government to purposely cause a severe recession e. to reduce taxes