The quantity demanded of money falls as the
A) interest rate falls.
B) interest rate rises.
C) supply of money rises.
D) none of the above, since the quantity demanded of money is unrelated to the interest rate
B
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The following data show levels of planned variables for an economy. I = investment, S = saving after taxes, G = government spending, T = taxation, X = exports, and M = imports. ISGTNXMA222943354640B243445394844C263848425047D284251475351What is the equilibrium level of domestic output?
A. Choice A B. Choice B C. Choice C D. Choice D
When the Fed lowers the legal reserve requirement, it
a. lowers the cost of borrowing from the Fed, allowing banks to make more loans b. raises the cost of borrowing from the Fed, disallowing banks from making the same quantity of loans c. increases the amount of excess reserves that banks hold, allowing them to make more loans d. increases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans e. decreases the amount of excess reserves that banks hold, disallowing them from making the same quantity of loans
The Case-Shiller index is normalized to equal 100 in January
A) 1999. B) 1990. C) 2000. D) 2001.
Answer the following statements true (T) or false (F)
1. Investment is ultimately limited by the amount of savings in the economy. 2. The opportunity cost of investment is a reduction in future consumption 3. Businesses are the main economic investors, while households are the main savers. 4. Economists believe that most short-run fluctuations are the result of supply shocks. 5.When prices are inflexible, the economy will respond to demand shocks through short run changes in output and unemployment.