A lower level of income causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
A
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Refer to Scenario 15.5. What is the total amount Catherine will lose in earnings by being a smoker, if she works now and continues until age 65?
A) $1500 B) $67,500 C) $90,000 D) $97,500 E) $120,000
At various times, the United States has undergone the painful process of reducing military spending. Military bases from the Carolinas to California pleaded to be spared, citing huge job losses if they close. How can one rationally decide which bases to shut down, given the necessity of jobs?
If a corner solution exists,
A. marginal rate of substitution will always be less than the slope of the budget constraint. B. marginal rate of substitution will always be equal to the slope of the budget constraint. C. marginal rate of substitution will always be greater than the slope of the budget constraint. D. none of the answer choices is correct.
The Intracoastal Bank has $5 million in deposits and $500,000 in reserves. If the required reserve ratio is 5%, excess reserves are equal to
A. zero. B. $125,000. C. $250,000. D. $500,000.