Which of the following are part of a commercial bank's reserves?
I. cash in the bank's vaults
II. loans
III. cash in checking accounts
A) I only
B) I and II
C) I and III
D) I, II and III
A
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The marginal propensity to consume (MPC) is the fraction of additional income that is spent
Indicate whether the statement is true or false
If the demand for letters written by Abraham Lincoln is higher than the demand for letters written by John Wilkes Booth, what would have to be true for the market equilibrium prices for these letters to be equal?
A) The supply of Lincoln letters would have to be less than the supply of Booth letters. B) The supply of Lincoln letters and the supply of Booth letters would have to be equal. C) If the demand for Lincoln letters is greater than the demand for Booth letters, the market equilibrium price for Lincoln letters will always be greater than the market equilibrium price for Booth letters. D) The supply of Booth letters would have to be less than the supply of Lincoln letters.