What is the effect of a higher price level on planned spending?
a. People are less willing to spend at each income level.
b. It makes stocks and bonds more attractive.
c. Consumers purchases more number of durable goods.
d. Imports of a nation fall and exports rise leading to an increase in net exports.
a
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A bank has deposits of $400, reserves of $50, and the desired reserve ratio is 7 percent. The bank's excess reserves are
A) $28. B) $50. C) $22. D) $0. E) $3.50
When the value of U.S. merchandise exports is less than the value of U.S. merchandise imports,
a. the exchange rate, other currencies per dollar, appreciates b. the value of the dollar must fall c. there will be an increase in the demand for dollars d. an unfavorable balance of trade results e. foreign currency reserves must fall
The least expensive way to clean up the environment is for all firms to reduce pollution by an equal percentage
a. True b. False Indicate whether the statement is true or false
An increase in the money supply will
a. increase interest rates, decreasing investment and aggregate demand. b. reduce interest rates, increasing investment and aggregate demand. c. reduce interest rates, decreasing investment and increasing aggregate demand. d. increase interest rates, increasing investment and aggregate demand.