Excess reserves are
a. checking deposits that are included in the M1 money supply but not the M2.
b. savings deposits that are included in the M2 money supply but not the M1.
c. actual reserves held by banks that exceed the legal requirement.
d. the portion of deposits that banks are required by the Fed to hold as reserves against their deposits.
C
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Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the
a. higher-paying job has a compensating wage differential of $3 per hour. b. higher-paying job has a compensating wage differential of $25 per hour. c. higher-paying job is intrinsically more attractive than the lower-paying job. d. factory is discriminating against Sally because she is a woman.
Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee. If Jumanji allows free trade, will Jumanji be an importer or an exporter of coffee?