By increasing the interest rate on bank reserves deposited at the Fed, the Fed can ______ the level of excess reserves banks are willing to hold, thereby _____ bank lending.
Fill in the blank(s) with the appropriate word(s).
Answer: increase, decreasing
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Refer to Table 21.1. If Martha's income doubled to $220,000 while the incomes of the other four residents did not change, what would happen to the original median income on Richlandia?
A) It would increase by $22,000. B) It would increase by $44,000. C) It would double. D) It would not change.
In the United States, the percentage of part-time workers who would like full-time work
A) increases in recessions and decreases in expansions. B) changes very little from expansion to recession. C) in 2013 was almost 100 percent of all part-time workers. D) Both answers A and C are correct. E) Both answers B and C are correct.
Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S0 to S2?
A) a fall in foreign interest rates B) a fall in the U.S. interest rate C) a rise in the U.S. exchange rate D) a fall in the U.S. exchange rate E) a rise in expected future U.S. exchange rate
Since price tends to equal marginal utility, the price of water is low and the price of diamonds is high.
Answer the following statement true (T) or false (F)