Depository institutions must
A) keep a certain percentage of their deposits as reserves.
B) use and pay for the services of the Federal Reserve System.
C) turn over a percentage of their profits to the Federal Reserve System as payment for services provided by the Fed.
D) set their interest rates according to schedules established by the Federal Reserve System.
A
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Refer to Figure 9.2. A movement from point d to point b could be caused by a(n)
A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) decrease in short-run aggregate supply.
In the Mundell-Fleming model, the exogenous variables are
a. government spending, taxes, and income. b. the exchange rate and the price level. c. the price level, the world interest rate, monetary policy, and fiscal policy. d. the world interest rate, the price level, and the exchange rate. e. none of the above.