This topic contains a solution. Click here to go to the answer

Author Question: If firms increase their investment spending by 10 million, then the economy's equilibrium output ... (Read 65 times)

awywial

  • Hero Member
  • *****
  • Posts: 577
If firms increase their investment spending by 10 million, then the economy's equilibrium output rises by exactly 10 million.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following correctly describes fractional reserve banking?
 a. The federal government only insures a fraction of the deposits at most banks.
  b. Banks keep a fraction of their loans with other banks to maintain the quality of their loan portfolio.
  c. Banks can loan out all but a small fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.
  d. Banks can loan out all but a fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jaykayy05

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

False

Answer to Question 2

d




awywial

  • Member
  • Posts: 577
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

For a complete list of videos, visit our video library