Refer to Figure 24-2. Ceteris paribus, a decrease in productivity would be represented by a movement from

Banks hold some deposits on reserve at the Fed because

A) the Fed requires every bank to hold at least $100 million on deposit at all times. B) the Fed will insure those deposits, but will not insure regular bank deposits. C) these are membership dues for being a member bank. D) these deposits meet the reserve requirements of the Fed.

Suppose that the supply curve remains unchanged. If the demand curve shifts to the right

A) the market clearing price definitely will decrease. B) the market clearing price definitely will increase. C) there will be no change in the market clearing price. D) the market will collapse.