Other things equal, by decreasing the interest rate paid on banks' required reserve deposits, the Fed can ________ the level of reserves banks are willing to hold, which would result in a(n) ________ in the money supply
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
C
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Slope is the best measure of responsiveness of the quantity demanded to a price change.
Answer the following statement true (T) or false (F)
Refer to the diagram for a private closed economy. The marginal propensity to consume is:
A. GF/GB.
B. DA/GB.
C. FE/DE.
D. FB/0B.
The portion of a government's indebtedness owed to foreigners is
A. external debt. B. internal debt. C. not recoverable. D. net debt.
If Adam's Rib Joint took in $35,000 in revenue last week and had out-of-pocket expenses of $31,500:
a. it is clear that Adam made an economic profit of $3,500 b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm. c. Adam clearly did not earn an economic profit. d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.