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question 99

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Thousands of U.S.banks failed in the 1930s because the Fed loaned too many reserves to member banks.


Definitions:

Opportunity Cost

Dismissing potential benefits from other possible choices by focusing on one.

Scarce Resources

Natural or human resources that are limited in supply and cannot fulfill all wants and needs due to their finite availability.

Free Lunch

An idiom expressing the idea that it is impossible to get something for nothing; in economics, it refers to the impossibility of getting a benefit without a cost.

Scarce

Limited in availability relative to the demand.

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