If the Fed raised the reserve requirement, the demand for reserves would
a. increase, so the federal funds rate would fall.
b. increase, so the federal funds rate would rise.
c. decrease, so the federal funds rate would fall.
d. decrease, so the federal funds rate would rise.
b
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The new European Economic Community, after it changed its name to the European Communities, tackled two issues related to:
A) enlargement (expansion) of the European Communities and economic integration between members. B) immigration and terrorism. C) secret Nazi cells and latent communism. D) unemployment and inflation.
Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.
Answer the following statement true (T) or false (F)
Suppose that the market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 ? 5W. The government has passed a law that subsidizes wages by $1 per hour. The equilibrium wage and quantity of labor with the subsidy is:
A. $2.5 and 12.5 workers, respectively. B. $3.5 and 17.5 workers, respectively. C. $4 and 15 workers, respectively. D. $3.5 and 10 workers, respectively.
The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the ________
A) classical growth theory B) modern theory of population growth C) neoclassical growth theory D) new growth theory