If the Fed injects reserves into the banking system and they are held as excess reserves, then the monetary base ________ and the money supply ________
A) remains unchanged; remains unchanged
B) remains unchanged; increases
C) increases; increases
D) increases; remains unchanged
D
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
A risk averse person's utility of wealth curve has a
A) positive slope and becomes steeper to the right. B) positive slope and becomes flatter to the right. C) negative slope and becomes steeper to the right. D) negative slope and becomes flatter to the right.
An example of a person who is counted as unemployed is a:
A. retired worker below the mandatory retirement age. B. part-time worker who would like to work full-time. C. senator who resigns her job to run for president. D. student going to school full-time.
Chris earns $1,500 per week and spends $1,000 per week on living expenses, puts $200 in a savings account, and buys $300 worth of shares in a stock mutual fund. Chris's saving is ________, and Chris's saving rate is ________.
A. $200; 13.3 percent B. $500; 33.3 percent C. $300; 20.0 percent D. $200; 20.0 percent