Suppose University Bank has zero excess reserves. If the required reserve ratio decreases, the
A. Bank's assets will increase.
B. Money multiplier will decrease.
C. Bank will be able to make more loans.
D. Bank will not have enough required reserves.
Answer: C
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If speculators believe a currency is soon going to be revalued, they will increase their demand for that currency
Indicate whether the statement is true or false
The investment trade-off:
A. defines the opportunity cost of capital investment. B. is why countries don't devote all their resources to capital investment. C. is a reduction in current consumption to pay for the investment in capital intended to increase future production. D. All of these are true.
Recall the Application about the factors involved in causing recessions, and the causes of recessions in the United States from 1893 to 1990 to answer the following question(s).Recall the Application. Recessions can occur either when there is a(n) ________ in aggregate demand or a(n) ________ in aggregate supply.
A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase
Price discrimination is usually defined as selling a product to different customers at
A. the same price as costs of service are the same. B. the same price even though costs of service are different. C. different prices as costs of service are different. D. different prices even though costs of service are the same.