As commercial banks keep more excess reserves, money creation
A. decreases.
B. increases.
C. remains the same.
D. could either increase or decrease.
Answer: A
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Which would most likely increase aggregate supply?
a. An increase in productivity b. An increase in the prices of imported products c. A decrease in net exports d. A decrease in business subsidies
An increase in the equilibrium price of Japanese yen per dollar could be caused by a(n):
A. increase in the general level of prices in Japan. B. increase in the U.S. demand for domestically-built automobiles. C. decrease in the U.S. income relative to the income in Japan. D. increase in the supply of dollars on the foreign market.
An effective price ceiling is best defined as a price:
A. lower than any supplier is willing to sell. B. imposed by government below equilibrium price. C. higher than any consumer is willing to pay. D. imposed by government above equilibrium price.
Indifference curves have positive slopes.
Answer the following statement true (T) or false (F)