Skill-Biased Technological Change the Demand for High-Skilled Workers, While the Slowdown

question 52

Multiple Choice

Skill-biased technological change the demand for high-skilled workers, while the slowdown in the pace of educational advancement reduces the supply of skilled workers, resulting in relatively wages for skilled workers.

• A)Aincreases; higher
• B)increases; lower
• C)decreases; higher
• D)decreases; lower

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Definitions:

Checkable Deposits

Checkable deposits are bank account balances that depositors can easily withdraw or write checks against at any time, constituting a primary medium of exchange for personal and business transactions.

Required Reserve Ratio

The proportion of depositors' balances banks must have on hand as cash, mandated by the central bank.

Excess Reserves

The reserves held by banks that are greater than the minimum amounts required by regulators, which can be lent out or invested.

Checkable Deposits

Bank account balances that can be withdrawn on demand using checks or electronic methods.