The Federal Reserve was established in 1913 to
A) prevent bad loans by requiring banks to hold reserves.
B) stop bank panics by acting as lender of last resort.
C) stimulate the economy by increasing bank reserves.
D) prevent inflation by decreasing the money supply.
Question 2
The marginal product of labor (MPL) can be calculated from the following ________.
A) the labor share of income and the average output per unit of labor
B) the labor share of income and average labor per worker
C) output and labor
D) the labor share of income and output
E) none of the above
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
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