Acme, inc., which manufactures the fireworks that municipal governments buy to put on their annual fireworks shows on the fourth of july, moved most of its manufacturing operations from the united states to china a decade ago. now, spark is moving production back to the united states because the company’s managers are uncomfortable with many chinese business practices. acme, inc. engages in when it moves its operations back to the united states.

Select the correct answer. after the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy? a. the interest rate on loans will fall. b. people will demand more foreign goods. c. people will start borrowing more money. d. the economy will face inflation. e. foreign investments will increase.