The amount of reserves that a commercial bank is required to hold is equal to:
A. the amount of its checkable deposits.
B. the sum of its checkable deposits and time deposits.
C. its checkable deposits multiplied by the reserve requirement.
D. its checkable deposits divided by its total assets.
C. its checkable deposits multiplied by the reserve requirement.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
If the average productivity of American firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see? (India's currency is the rupee.)
A) an increase in the value of the rupee relative to the dollar B) a decrease in the quantity demanded of Indian products relative to American products C) a decrease in the prices of Indian products D) an increase in the quantity demanded of Indian products relative to American products
Refer to above Table 2-1. What is the level of Personal Saving?
A) 100 B) 90 C) 80 D) 130
Which of the following is NOT a form of nonprice competition?
a) location b) physical characteristics c) advertising d) discounts