For the most part, prior to 2008, banks typically held:
A. excess reserves equal to approximately 100% of deposits.
B. excess reserves equal to less than 1% of deposits.
C. excess reserves equal to between 10 and 20% of deposits.
D. absolutely no excess reserves.
Ans: B. excess reserves equal to less than 1% of deposits.
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In the short run, in equilibrium, firms that operate in a monopolistically competitive market face a down sloping demand curve and will charge a price where _____ and ______.
a. quantity produced is maximized; costs are minimized b. sales revenue is maximized; costs are falling c. MR = MC; P > average cost d. average costs are rising; sales are rising
When the government levies a tax where everyone is taxed the same fixed percentage of their incomes, this tax is known as a(n):
a. regressive tax. b. progressive tax. c. proportional tax. d. excise tax. e. luxury tax.