A bank temporarily short of required reserves may be able to remedy this situation by:
A. borrowing funds in the federal funds market.
B. granting new loans.
C. shifting some of its vault cash to its reserve account at the Federal Reserve.
D. buying bonds from the public.
A. borrowing funds in the federal funds market.
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In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to
A. shift long-run aggregate supply to the left. B. shift aggregate demand to the right. C. shift short-run aggregate supply to the left. D. shift short-run aggregate supply to the right. E. shift aggregate demand to the left.
The above figure shows the market for steel ingots. The socially optimal quantity of steel is
A) 0 units. B) 50 units. C) 100 units. D) produced if the market were competitive.