A reduction in the required reserve ratio would cause the interest rates to
A. increase only if the level of investment is low relative to historic levels.
B. decrease.
C. increase.
D. increase only if the level of unemployment is high.
B. decrease.
You might also like to view...
The post-World War II record shows that recessionary gaps may be long-lasting because ____ tends not to occur
a. deflation b. reflation c. stagflation d. disinflation
When a country allows trade and becomes an exporter of a good,
a. domestic producers become better off, and domestic consumers become worse off. b. domestic producers become worse off, and domestic consumers become better off. c. domestic producers become better off, but the effect on the well-being of domestic consumers is ambiguous. d. domestic consumers become worse off, but the effect on the well-being of domestic producers is ambiguous.
According to the above figure, if the firm is earning zero economic profits, what quantity is the firm selling and at what price?
A. Q = 1,200; P = $7 B. Q = 1,000; P = $5 C. Q = 800; P = $4 D. Q = 200; P = $4
We say that the United States has a trade surplus when:
A. U.S. imports are less than U.S. exports B. U.S. tax revenues are greater than U.S. government spending C. U.S. income is greater than U.S. spending D. U.S. spending is less than U.S. savings