In the short run, if current output remains persistently above potential ________
A) inflation will rise causing a movement along the aggregate supply curve
B) expected inflation will rise causing an upward shift of the aggregate supply curve
C) the aggregate supply curve will shift until current output returns to its potential level
D) all of the above
E) none of the above
D
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Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5 percent, Fershur Bank's
A) desired reserves increase by $4,000. B) liabilities do not change but its assets increase. C) excess reserves increase by $4,000. D) desired reserves increase by $200 and its excess reserves increase by $3,800. E) assets and its liabilities change in opposite directions.
Coins and paper bills used as money:
a. currency b. commodity money c. representative money d. fiat money