A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, $10 million in deposits at the Fed, and $5 million in government securities in the bank vault. Its total reserves equal

If a tax is imposed on each unit of a good purchased, ________

A) the supply curve shifts to the right B) the supply curve shifts to the left C) the demand curve shifts to the right D) the demand curve shifts to the left

Advocates of flexible exchange rates claim that under flexible exchange rates

A) enhanced control over fiscal policy would allow countries to dismantle their distorting barriers to international payments. B) reduced control over monetary policy would allow countries to dismantle their distorting barriers to international payments. C) enhanced control over monetary policy would allow countries to increase their distorting barriers to international payments. D) enhanced control over monetary policy would allow countries to dismantle their distorting barriers to international payments. E) enhanced control over monetary policy would destabilize exchange rates.