Reserves are ________

A) gold in a bank's vault plus its gold at Federal Reserve banks
B) cash in a bank's vault plus its deposits at Federal Reserve banks
C) cash in a bank's vault plus its gold at Federal Reserve banks
D) cash in a bank's vault plus the cash carried by its customers

B

Economics

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If a firm operating in a perfectly competitive industry is confronted with an equilibrium market price of $5, its marginal revenue

A. will be greater than $5. B. will also be $5. C. will be less than $5. D. may be either greater or less than $5.

Economics

One economic hypothesis states that people form expectations by combining the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes, and then react accordingly. This is known as the

A. contrary opinion hypothesis. B. relevance hypothesis. C. rational expectations hypothesis. D. structural hypothesis.

Economics