Which of the following would decrease aggregate demand?
a) Increased consumption
b) Increasing export revenue
c) Increased taxation revenue
d) Increased investment
Answer: b) Increasing export revenue
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In October of 20142, the interest rate on money market accounts was about 0.2 percent. In 2007, the interest rate on money market accounts was about 4.0 percent
What has been the impact on the demand for money curve from this fall in the interest rate? A) the money demand curve shifted to the right B) the money demand curve shifted to the left C) there was a downward movement along the demand for money curve D) there was an upward movement along the demand for money curve
Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the
a. LM schedule to the left. b. BP schedule to the right. c. BP schedule to the left. d. IS schedule to the right.
Economists would say that the demand for tacos is
a. relatively inelastic because there are very few close substitutes available. b. relatively elastic because there are many substitutes for tacos. c. increasing because of reports of Mad Cow Disease. d. relatively inelastic because its demand curve is flatter.
Assume the reserve requirement is 10 percent. First National Bank has vault cash and deposits with the Fed of $30 million, loans and securities of $60 million, and checking deposits of $300 million. First National is in a position to make
a. no additional loans. b. $5 million of additional loans. c. $10 million of additional loans. d. $15 million of additional loans.