What will happen to the demand for reserves if real GDP increases?

a. It will shift outward.
b. It will shift inward.
c. It will remain unchanged.
d. It depends on what happens to interest rates.


a

Economics

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An advantage of fixed exchange rates for a country that suffers from bouts of high inflation is:

A. it makes imports less expensive. B. it unties policymakers' hands so they can alter the reserves of the banking system as needed. C. policymakers will have increased control over domestic interest rates. D. it establishes a credible low inflation policy.

Economics

Trees are considered:

A. a nonrenewable resource. B. physical capital. C. a renewable resource. D. technology.

Economics

The shape of the immediate-short-run aggregate supply curve implies that:

A. total output depends on the volume of spending. B. increases in aggregate demand are inflationary. C. output prices are flexible, but input prices are not. D. government cannot bring an economy out of a recession by increasing spending.

Economics

When comparing the severity of recessions since World War II, economists focus on the ones in

A. 2001 and 2007-2009. B. 1968 and 1974. C. 1990 and 2001. D. 1982 and 2007-2009.

Economics