Assuming all else equal, if a bank expects a bank run in the future:
A) there will be an upward movement along its demand curve for reserves.
B) its demand curve for reserves will shift to the left.
C) there will be a downward movement along its demand curve for reserves.
D) its demand curve for reserves will shift to the right.
D
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Marginal cost is equal to
A) the total cost of a firm's production. B) total cost minus fixed cost. C) a cost that is not related to the quantity produced. D) the change in total cost that results from a one-unit increase in output. E) the change in fixed cost that results from a one-unit increase in output.
Ceteris Paribus, if current output has fallen below potential ________
A) a positive inflation gap will ensue B) it is likely that the equilibrium real rate has fallen below the policy rate C) a negative unemployment gap will ensue D) it is likely that the equilibrium real rate has risen above the policy rate E) none of the above