Currently in the United States, banks count as their reserves
A) only the currency in their vault.
B) the currency in their vault plus their holding of Treasury securities.
C) only their holding of Treasury securities.
D) their liabilities against which they pay no interest.
E) the currency in their vault plus their deposits at the Federal Reserve.
E
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How does the liquidity premium theory explain an upward sloping yield curve during normal economic times?
What will be an ideal response?
The price elasticity of supply
a. is a number between 0 and 1. b. measures the percent change in quantity supply as a result of a 1-percent change in price c. measures the percent change in quantity supplied as a result of a 1-percent change in cost. d. measures the shift in supply as the result of a price change e. measures the movement of a supply curve along a fixed demand curve
The concept of aggregate supply refers to a
a. fixed number of output. b. list of products demanded. c. schedule of output. d. schedule of production costs.
The term "productivity"
a. means the same thing as "efficiency." b. is seldom used by economists, as its meaning is not precise. c. refers to the quantity of goods and services produced from each unit of labor input. d. refers to the variety of goods and services from which households can choose when they shop.