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Chris M.
Chris M., M.S.W. Social Work
Category: Homework
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53. Banks can lend money because ______. (Points 4)

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53. Banks can lend money because ______. (Points: 4)
they have so much to lend
they know not everyone wants their deposits back at the same time
there is a high demand for loans
they know how much cash they have in their vault

54. Banks create money when they ______. (Points: 4)
make loans
take deposits
hold excess reserves
pay withdrawals to depositors

55. To change the money supply, the Fed most frequently uses _______. (Points: 4)
changes in the required reserve ratios
changes in the discount rate
open-market operations
none of the above

56. The loanable funds model focuses on the ______. (Points: 4)
demand for money
supply of funds from lenders
supply of funds from borrowers and the demand by lenders
supply of funds from lenders and the demand from borrowers

57. Expansionary monetary policy _______. (Points: 4)
increases the money supply, interest rates, consumption, and investment
decreases the money supply, interest rates, consumption, and investment
increases the money supply, decreases interest rates, and increases consumption and investment
decreases the money supply, increases interest rates, and decreases consumption and investment

58. In the long run, changes in the money supply _______. (Points: 4)
affect both the aggregate price level and aggregate output
affect only the price level but they do not change aggregate output
affect aggregate output but not the aggregate price level
have no impact on either the aggregate price level or aggregate output

59. Frictional unemployment might be _______. (Points: 4)
good since that means people may be seeking jobs that match their job skills
good because people learn how other folks live
bad because people are not getting a paycheck
bad because people are out of work

60. Deviations from the natural rate of unemployment are known as ______. (Points: 4)
frictional unemployment
structural unemployment
random unemployment
cyclical unemployment

61. When the output gap is negative the actual unemployment rate is ______. (Points: 4)
above the natural rate
below the natural rate
equal to the natural rate
the actual and natural unemployment rates are not related to the output gap

62. Wages may be sticky in the short run due to _______. (Points: 4)
so few workers being unionized
firms wanting to make a profit at the expense of employees
government regulation
some wages being governed by long-term contracts

63. If workers expect a lower rate of inflation, the short-run Phillips curve will ______. (Points: 4)
remain constant, but there will be a movement down the curve
be unaffected
shift up
shift down

64. In the long run, any given percentage increase in the money supply ______. (Points: 4)
decreases real GDP
leads to an equal percentage increase in the overall price level
increases real GDP
leads to an equal percentage decrease in the unemployment rate

65. Seigniorage refers to the ______. (Points: 4)
problems faced by Social Security as the population ages
government's right to print money
problems senior citizens face in retirement
problems created when the government prints too much money

66. If the economy is in a liquidity trap _______. (Points: 4)
both monetary and fiscal policies are effective
neither monetary nor fiscal policy is effective
monetary policy is effective, but fiscal policy is not
fiscal policy is effective, but monetary policy is not
Submitted: 6 years ago.
Category: Homework
Expert:  Chris M. replied 6 years ago.

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