"To count as required reserves, the reserves must be on deposit at the bank's district Federal Reserve Bank." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect. Currency held in the bank's vault also counts as reserves.
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_____ varies along a given aggregate demand curve
a. The nominal interest rate in the domestic country b. The exchange rate between the domestic currency and a foreign currency c. The aggregate supply in a foreign country d. The price level in the domestic country e. The prices of resources used in production
As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will
decline. This is known as the law of A) diminishing total product. B) diminishing average product. C) diminishing marginal product. D) decreasing product.