Fractional reserve banking
A system in which banks keep only a percentage of their deposits on reserve as vault cash and deposits at the Fed
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $10
A) only Anya and Basil will buy tickets. B) Celeste's consumer surplus is $25. C) the total consumer surplus from the purchase of tickets will be $61. D) everyone will buy a ticket except for Esther.
Which of the following terms describes the process in which the exchange rate equalizes the prices of internationally traded goods across countries?
a. purchasing power parity b. exchange c. profiteering d. arbitrage
Broad money is represented by
A) H. B) M1. C) M2. D) higher powered money. E) the monetary base.