On a Graph of the Supply and Demand for Reserves

question 59

Multiple Choice

On a graph of the supply and demand for reserves representing a central bank using the channel system, if the demand curve intersects the leftmost horizontal portion of the supply curve, the equilibrium overnight rate equals

• A) the interest rate on reserves.
• B) the discount rate.
• C) the repo rate.
• D) none of the above.

Identify the roles of sodium and potassium ions in the generation and propagation of action potentials.

Describe the resting potential state of a neuron and the importance of ion distribution.

Discuss the impact of external substances on neuron activity, such as the effects of drugs on sodium ion channels.

Explain the role and importance of neurotransmitters in neural communication.

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Definitions:

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.

Full Employment GDP

The output level produced by the economy when all available resources are efficiently employed, representing potential GDP under full employment.

Multiplier

In economics, a factor that quantifies the impact of spending changes in an economy, particularly the increase in income or economic activity resulting from an injection of spending.

Deflationary Gap

A situation where aggregate demand is less than the total supply of goods and services, leading to deflation and unemployment.