A decrease in the reserve requirement:
A. increases the money supply, which leads to increased interest rates and a fall in investment spending.
B. increases the money supply, which leads to decreased interest rates and a rise in investment spending.
C. decreases the money supply, which leads to increased interest rates and a fall in investment spending.
D. decreases the money supply, which leads to decreased interest rates and a rise in investment spending.
Answer: B
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The justification for government action based on the argument that everyone agrees to be coerced if everyone else is forced as well is not compatible with the criterion of Pareto superiority
a. True b. False
Which of the following is an example of opportunity cost not measured by money cost?
a. the time spent eating a business lunch at a restaurant b. the time spent preparing a meal eaten at home c. the time spent studying to obtain an "A" in economics d. the time spent repairing a car in one's own garage e. All of the above are correct.
Higher rates of investment spending contribute most to higher levels of
a. political progress. b. consumption spending. c. technological progress. d. government development.
Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays 6 percent annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much will be in the account when you retire?
A. $3,752 B. $46,794 C. $24,871 D. $12,985