On the books of the Fed the difference between borrowed reserves and discount loans is equal to
A) excess reserves.
B) required reserves.
C) currency in circulation.
D) zero; they are the same thing.
Question 2
Nonactivists believe that ________.
A) there is a very rapid self-correcting mechanism since prices and wages are very flexible
B) lags to policy implementation are so long that even the correct policies may lead to undesirable consequences
C) policy interventions should take place less frequently than what Keynesians advocate
D) all of the above
E) none of the above
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