If a bank has deposits worth $800,000 . total reserves worth $800,000 . and the reserve ratio of 0.20, what is the value of excess reserves?
a. $620,000
b. $1,000,000
c. $1,160,000
d. $640,000
e. $160,000
d
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When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in the private sector?
A) savers hedge on purchases B) nothing C) savings decrease D) savings increase
Suppose that real GDP grew more in Country A than in Country B last year
a. Country A must have a higher standard of living than country B. b. Country A's productivity must have grown faster than country B's. c. Both of the above are correct. d. None of the above are correct.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
The slope of a demand curve is not used to measure the price elasticity of demand because
A) the slope of a linear demand curve is not constant. B) the slope of a line cannot have a negative value. C) the measurement of slope is sensitive to the units chosen for price and quantity. D) the slope of the demand curve does not tell us how much quantity changes as price changes.