During a football game, it starts to rain and the temperature drops. The senior class, which runs the concession stand and is studying economics, raises the price of coffee from 50 cents to 75 cents a cup. They sell more than ever before. Which answer explains this?

Banks keep ________ of deposits as reserves because on a typical day withdrawals are ________ deposits

A) more than 100%; much greater than B) exactly 100%; about the same as C) less than 100%; about the same as D) less than 100%; much greater than

In the Keynesian model, money is

A) neutral in both the short run and the long run. B) neutral in neither the short run nor the long run. C) neutral in the short run, but not in the long run. D) neutral in the long run, but not in the short run.