Bank A holds $1 million in required reserves and the required reserve ratio is 9 percent. It follows that Bank A holds checkable deposit liabilities that total approximately
A) $111 million.
B) $11.11 million.
C) $90 million.
D) $900 million.
B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
What is the difference between between total costs, variable costs, and fixed costs?
What will be an ideal response?
The coupon rate on newly issued bonds is usually higher for bonds with ________ terms and ________ risk that the borrower will go bankrupt.
A. longer; greater B. shorter; smaller C. shorter; greater D. longer; smaller
The shorter is the interval between firms' price adjustments,
A. a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run. B. a given unexpected increase in aggregate demand will cause a larger increase in output. C. the greater is the scope for activist policies to stabilize the economy. D. the smaller is the scope for activist policies to stabilize the economy.