A decrease in the price level causes a lower equilibrium quantity demanded.
Answer the following statement true (T) or false (F)
False
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Economists discourage homeowner bailouts because
a. They encourage irresponsible borrowings b. It increases moral hazard among borrowers c. It punishes responsible borrowers d. All of the above
If saving is less than investment, the appropriate countercyclical monetary policy would be:
A. an open market sale of government bonds. B. a cut in the reserve requirement. C. a cut in the federal funds rate. D. a cut in the discount rate.
There must always be a balance of a nation's:
A. goods exports and gold imports. B. total international payments. C. imports and exports of goods and services. D. net transfers and net investment income.
The required reserve ratio is 12.5%. The money multiplier is
A. 2.5. B. 6. C. 7.5. D. 8.