In recent years, the poorest 20 percent of the U.S. population received approximately 15 percent of the total income

A bank's reserves are

A) the minimum value of assets it must have. B) the amount of gold it is required to have as reserves against loans. C) the value of federal securities it is required to have as reserves against loans D) deposits that banks have accepted from customers but have not loaned out.

Suppose that there is a negative aggregate demand shock and the central bank commits to an inflation rate target. If the commitment is credible, then

A) the public's expected inflation will remain unchanged. B) the short-run aggregate supply curve will rise. C) over time inflation will fall. D) all of the above. E) both A and C.