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Economics

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Archibald Bernier

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What is a mixed economy

Generally speaking a mixed economy is one where the government has controls over private industry through various types of regulations. One example is the setting of the minimum wage. For the most part a mixed economy does not require the government to actually own any of the means of production. Also, a mixed economy creates "authorities" to operate tunnels, bridges and airports.

How could the federal reserve encourage banks to lend out more of their reserves

By reducing the discount rate

What is the total amount of goods and services in the economy available at all possible price levels called

aggregate demand.

What changes were made to the Federal Reserve system in 1935

The federal reserve system was given more centralized power

Suppose a bank has 500000 in deposits a required reserve ratio of 5 percent and bank reserves of 100000 Then the bank can make new loans in the amount of how much

required reserves is 25,000. the bank has excess reserves of 75,000, they can loan out everything but the required reserves

so assuming they have no loans, they can loan up to 475,000.

What is the abbreviation for the research arm of the federal reserve

FAC (Federal Advisory Councel)

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