The money price of a good is that price
A. expressed in today's dollars.
B. expressed in constant 2017 dollars.
C. expressed in purchasing power against a common item like bread.
D. that would clear the market.
Answer: A
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Assume a bank currently holds $75 million in demand deposits, $10 million in vault cash and $25 million deposited at the Federal Reserve. If the required reserve ratio is 15 percent, how much must the bank hold in required reserves?
a. $15.0 million b. $3.75 million c. $11.25 million d. $16.5 million e. $12.75 million.
Which of the following policies would be most likely to reduce the rate of inflation?
a. sale of government bonds by the Federal Reserve b. a reduction in the discount rate c. an increase in the size of the federal budget deficit d. a reduction in the required reserves imposed on the banking system
Figure 11-7
For the firm in Figure 11-7, an unregulated monopolist, profit-maximizing output is below the long-run competitive level by how much?
a.
100
b.
75
c.
50
d.
25
Suppliers will supply more of a good when the price of that good rises because the opportunity cost of not producing that good has risen.
Answer the following statement true (T) or false (F)