If the Federal Reserve is currently paying 1 percent interest on bank reserves, but then reduces that interest rate to 0.5 percent, banks may decide to hold ________ reserves, and the money supply may ________.
A. fewer; increase
B. more; decrease
C. more; increase
D. fewer; decrease
Answer: A
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Suppose we are plotting the relationship between the unemployment rate and the growth rate of real GDP
If the unemployment rate is measured along the vertical axis and the growth rate of real GDP is measured along the horizontal axis, we will get a(n) ________. A) downward sloping curve B) horizontal straight line C) vertical straight line D) upward sloping curve
?Many externalities arise from poorly defined property rights.
Answer the following statement true (T) or false (F)
Which of the following products can be sold through mass advertising?
a. A new electrocardiogram machine to be used by medical examiners b. A mainframe computer installation c. A new health insurance policy d. A new brand of baby diapers
The Phillips Curve is steeper at higher rates of inflation and lower levels of unemployment
a. True b. False Indicate whether the statement is true or false