Which of the following compose the reserves of a commercial bank?
a. checkable deposits and time deposits
b. vault cash and deposits of the bank with the Federal Reserve
c. U.S. securities and stock equity
d. cash and U.S. securities
b
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Which of the following will cause a reduction in the amount of money individuals wish to hold?
A) an increase in income B) an increase in the interest rate C) an increase in the price level D) all of the above
Higher prices lead to higher levels of real wealth
Indicate whether the statement is true or false
In 2015, the total income of all U.S. residents was about
a. $10 billion. b. $16 billion. c. $10 trillion. d. $16 trillion.
If the government raised land taxes $20/acre, this would increase the farmer's average fixed cost. How would that affect (a profit maximizing) farmers' decision about the quantity of corn to produce in the short run?
a. It would have little change because in the short run the farmer will consider only the Average Variable Cost (AVC) in making a decision on quantity supplied b. It will decrease the quantity the farmer is willing to supply because the Average Variable Cost (AVC) will increase for the farmer c. It will decrease the quantity the farmer is willing to supply because the farmer considers all costs in the short run in making a decision about quantity supplied d. None of the above