The market demand curve
a. is the sum of all individual demand curves.
b. is the demand curve for every product in an industry.
c. shows the average quantity demanded by individual demanders at each price.
d. is always flatter than an individual demand curve.
a
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If depository insurance exists, bank managers may make riskier loans than they would have otherwise, which is an example of
A) adverse selection. B) regulatory lag. C) irrational behavior. D) moral hazard.
Which of the following will cause the aggregate demand curve to shift to the left?
A) An increase in the price level B) An increase in the interest rate C) An increase in money demand D) An increase in investment expenditures
In the equation Y = C + I + G + NX,
a. Y represents the economy's total expenditure. b. C represents household expenditures on services and durable goods. c. all of the variables are always positive numbers. d. All of the above are correct.
If the Fed wants to discourage commercial bank lending, it will:
A. increase the interest paid on reserves held at the Fed. B. decrease the interest paid on reserves held at the Fed. C. buy government securities from commercial banks. D. lower the federal funds rate target.