Which of the following might lead banks to hold more reserves?
A. An increase in the demand for loanable funds
B. A decrease in the legal reserve requirement
C. Fear that customers will want to withdraw most of their deposits
D. Fear that businesses may decide to borrow less to fund investments
Ans: C. Fear that customers will want to withdraw most of their deposits
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Describe the major sources of tax revenue and expenditures for the federal government
A nation's capital consists mainly of stocks, bonds, and other financial assets
a. True b. False Indicate whether the statement is true or false
As the marginal propensity to consume (MPC) increases, the spending multiplier
a. increases. b. decreases. c. remains constant. d. becomes indefinable.
If we are considering the relationship between two variables and release one of the other-things-equal assumptions, we would expect:
A. the relationship to change from direct to inverse.
B. the line representing that relationship on a graph to shift.
C. the data points to have a tighter fit to the line representing the relationship.
D. the relationship to change from inverse to direct.