The life-cycle hypothesis predicts what consequence of aging of the overall population? [That is, an increase in T, relative to R & L.]
A) a decrease in the marginal propensity to consume out of wealth
B) an increase in aggregate saving
C) a decrease in the marginal propensity to consume out of income
D) an increase in aggregate wealth
C
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Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1,000 and total assets of $10,000, the amount of desired reserves is
A) $100. B) $900. C) $1,000. D) $9,000. E) $1,100.
If a polluting producer is forced to pay a pollution charge, what is the effect on the supply and demand curves for the product?
A) The quantity supplied along the firm's supply curve increases. B) The firm's demand curve shifts leftward. C) The firm's supply curve shifts rightward. D) The firm's supply curve shifts leftward. E) Both the supply curve and the demand curve shift leftward.
Along a linear demand curve, as the price increases from zero,
a. demand decreases b. demand increases c. quantity demanded increases d. total revenue first increases but eventually decreases e. total revenue first decreases but eventually increases
To calculate required reserves, you must multiply the required reserve ratio by the amount of transactions account balances on the bank's balance sheet.
Answer the following statement true (T) or false (F)