In 2012, the U.S. federal government budget had a budget deficit. If there is no Ricardo-Barro effect, this deficit ________ the demand for loanable funds and ________ the real interest rate
A) decreased; lowered
B) did not change; did not change
C) increased; raised
D) decreased; raised
E) increased; lowered
C
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Which of the following would necessarily increase the equilibrium interest rate?
a. The demand for and the supply of loanable funds shift right. b. The demand for and the supply of loanable funds shift left. c. The demand for loanable funds shifts right and the supply of loanable funds shifts left. d. The demand for loanable funds shifts left and the supply of loanable funds shifts right.
A tax levied on imported goods is called
What will be an ideal response?
Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%?
A) The bank's required reserves will decrease to $500. B) The bank's excess reserves will increase to $1,000. C) The bank's required reserves will increase to $1,000. D) The bank's ability to create loans increases by 5%.
________ is a group of firms colluding to make price and output decisions.
A. A concentrated industry B. Price leadership C. A cartel D. An oligopoly