The monetary base is
A) currency and reserves of depository institutions.
B) currency minus depository institutions' reserves.
C) depository institutions' reserves minus Federal Reserve notes.
D) the money borrowed by banks from other banks.
A
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Rank the following goods from most elastic to least elastic: fruit, apples, Granny Smith apples
A) Fruit, apples, Granny Smith apples B) Apples, Granny Smith apples, fruit C) Granny Smith apples, apples, fruit D) The goods cannot be ranked by elasticity because it ultimately involves the problem of comparing apples to oranges.
Building a good reputation:
A. is a form of screening. B. is a form of signaling. C. is a form of statistical discrimination. D. None of these statements is true.
According to efficient market theory, which of the following can best predict the stock price of a particular company tomorrow?
A) a finance professor who knows a lot of investment theory B) a stock trader who has traded stocks for more than 10 years C) that company's employee who has inside information about the company D) none of the above: Everyone has an equal chance of predicting future stock prices.
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A. In the long run, the firm has no incentive to alter its scale of operations. B. In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal. C. Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC. D. In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.