The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
Economics
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In September 2008, Regions Bank has $89 million in M1 deposits, $3 million in reserves and $81 million in loans. Regions Bank's desired reserve ratio is
A) 3.4 percent. B) 3.7 percent. C) 91 percent. D) 29.67 percent.
Economics
Which of the following accounts for a movement along a given AD curve?
a. The substitution effect b. The tax rate effect c. The real-balance effect d. The foreign aid effect e. The government spending effect
Economics