When the Fed makes higher interest payments on bank reserves, banks will hold ________ reserves which will ________ the money supply
A) less; increase B) less; decrease C) more; increase D) more; decrease
D
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Everything else remaining unchanged, what is likely to happen to the equilibrium quantity of credit and the real interest rate if:
a. the credit demand curve shifts to the right? b. the credit supply curve shifts to the left? What will be an ideal response?
In the United States, the average replacement ratio associated with unemployment insurance benefits is
A. 80%. B. 100%. C. 35%. D. 10%. E. 50%.
An increase in the price of product A will:
A. increase the demand for complementary product C. B. increase the demand for substitute product B. C. reduce the demand for resources used in the production of A. D. reduce the demand for substitute product B.
In economics, the term physical capital
A) refers to funds used by businesses to acquire goods and services. B) refers to all manufactured resources used for production. C) refers to the process of raising funds through the stock market. D) refers to the stock of merchandise already produced.