Most cases of corporate bankruptcy are part of the Chapter ________ variety.
A. 13
B. 15
C. 7
D. 11
Answer: D
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When the reserve requirement is increased, ________.
A. the excess reserves of member banks are increased B. a single commercial bank can no longer lend dollar-for-dollar with its excess reserves C. required reserves are changed into excess reserves D. the excess reserves of member banks are reduced
Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use discretionary fiscal policy to close the existing gap, it should
A) decrease taxes. B) increase taxes. C) increase the money supply. D) decrease government spending.
If aggregate demand equals aggregate supply, macroeconomic equilibrium exists
a. True b. False Indicate whether the statement is true or false
Which of the following would be most likely to cause an increase in current aggregate demand in the United States?
a. increased fear that the U.S. economy was going into a recession b. an increase in the real interest rate c. a reduction in the expected rate of inflation d. rapid growth of real income in Canada and Western Europe