Which of the following assets can a commercial bank count as reserves?
a. its holdings of U.S. Treasury bills
b. its vault cash and deposits with the Fed
c. its outstanding loans
d. the savings accounts of its depositors
B
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The entry of new firms into a competitive market will
a. increase market supply and increase market prices. b. increase market supply and decrease market prices. c. decrease market supply and increase market prices. d. decrease market supply and decrease market prices.
Alex receives a raise at work and continues to work the same number of hours each week. What is the most likely way that his demand for $3 T-shirts, which he considers an inferior good, change?
(A) It will increase. (B) It will stay the same. (C) It will fluctuate erratically. (D) It will decrease.
Refer to the information provided in Table 14.5 below to answer the question that follows. Table 14.5B's Strategy ?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. Firm A?s dominant strategy is
A. to not advertise. B. dependent on what Firm B does. C. to advertise. D. indeterminate from this information, as no information is provided on Firm A?s risk preference.
If the full-employment GDP for the economy is at L, then we can say with certainty that the:
A. actual budget will have a deficit.
B. cyclically adjusted budget will have a deficit.
C. actual budget will have a surplus.
D. cyclically adjusted budget will have a surplus.