In the banking system today, the reserves banks hold against their deposit liabilities must take one of two forms. They are
A) vault cash and deposits at the Fed.
B) vault cash and checkable deposits.
C) currency in circulation and checkable deposits.
D) gold and vault cash.
Ans: A) vault cash and deposits at the Fed.
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Refer to the above figure. Which of the graphs is consistent with the long-run aggregate supply curve?
A) Graph A B) Graph B C) Graph C D) Graph D
Which of these statements about cartel pricing power is true?
A. The larger the share of world production controlled by the cartel, the higher the price set by the members will be. B. The more inelastic the market demand for the cartel's product, the lower will be the price that the cartel members can charge to maximize profits. C. The larger an unexpected increase in unsold inventories is, the higher the price set by the cartel members will be. D. The greater the elasticity of supply of the non-cartel members, the higher the price set by the cartel members will be.