A bank's reserves include
A) the cash in its vault plus the value of its depositors' accounts.
B) the cash in its vault plus its deposits held at a Federal Reserve bank.
C) the cash in its vault plus any gold held for the bank at Fort Knox.
D) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.
B
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In the classical model, what is the result of an increase in aggregate demand?
A) The price level increases, and real GDP remains constant. B) The price level decreases, and real GDP remains constant. C) Real GDP increases, and the price level remains constant. D) Real GDP decreases, and the price level remains constant.
The following price-quantity coordinates for gold used by U.S. dentists were observed: P = $875/ounce, Q = 342,000; P = $200/ounce, Q = 706,000. These points most likely lie along the
A. supply curve for gold for dental use. B. demand curve for dental use. C. equilibrium curve for dental use. D. production possibilities curve for dental use.
Approximately what percentage of national income consists of compensation of employees?
A. 10 per cent B. 25 per cent C. 70 per cent D. 95 per cent
If the value of the price elasticity of demand is 0.2, this means that:
A. a 20 percent decrease in price causes a 1 percent increase in quantity demanded. B. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded. C. a 5 percent decrease in price causes a 1 percent increase in quantity demanded. D. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded.