The monetary base is equal to

A. M2 minus M1.
B. banks' reserves plus currency held by the nonbank public.
C. banks' reserves plus their holdings of Treasury securities.
D. banks' reserves plus fed funds.


Answer: B

Economics

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As a result of financial deregulation

A) the IS curve became flatter and the LM curve became steeper, with the result that the interest rate became more volatile. B) the IS curve became steeper and the LM curve became flatter, with the result that the interest rate became more volatile. C) both the IS curve and the LM curve became steeper, with the result that the interest rate became more volatile. D) both the IS curve and the LM curve became flatter, with the result that the interest rate became more volatile.

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Economics

The profit-maximizing quantity of the monopolist compared to the perfectly competitive industry in the above figure are, respectively

A. Q1 and Q5. B. Q1 and Q3. C. Q1 and Q2. D. Q2 and Q3.

Economics