An increase in the interest rate will cause
A) a reduction in the supply of central bank money.
B) a reduction in the demand for currency.
C) a reduction in the demand for reserves.
D) all of the above
E) both B and C
E
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How do speculators provide a more rational guide to production and consumption decisions compared to markets?
Which of the following is NOT a negative externality?
A. E-mail "spam" consisting of advertisements for goods and services B. Low-flying aircraft creating noise over an otherwise quiet neighborhood C. A household pet leaving waste on a public sidewalk D. A homeowner failing to remove trash from his yard, leaving it as an unsightly eyesore in the neighborhood
The absence of unexpected shocks, the economy will tend to experience:
A. positive, noninflationary growth. B. no changes in output or prices. C. positive growth with mild amounts of deflation. D. positive growth with mild amounts of inflation.
A purely competitive firm currently producing 20 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be:
A. $120 B. $240 C. $360 D. Indeterminate based on the given information