Use the following graph to answer the next question.The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will produce how many units to maximize profits in the short run?

Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1000 and total assets of $10,000, the amount of desired reserves is

A) $9,000. B) $900. C) $100. D) $1,000. E) $1,100.

How is the impact of contractionary monetary policy different in an open economy than in a closed economy?

What will be an ideal response?