Assuming all else equal, an increase in the real interest rate will cause:
A) a leftward shift of the credit supply curve.
B) a rightward shift of the credit supply curve.
C) a downward movement along the credit supply curve.
D) an upward movement along the credit supply curve.
D
You might also like to view...
The efforts of nations to influence exchange rates are known as
A) open market operations. B) establishing terms of trade. C) foreign exchange market intervention. D) rate discrimination.
From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, the huge expansion in the Fed's balance sheet and the monetary base did not result in a large increase in monetary supply because
A) most of it just flowed into holdings of excess reserve. B) the Fed also increased the required reserve ratio. C) the Fed also conducted open market sales. D) the discount loan decreased.
The poverty line is the income level
a. earned by a worker employed full-time at the minimum wage. b. below which a family is officially considered "poor." c. above which a family is not entitled to government assistance. d. that is the average for American families.
As an economist working for a U.S. government agency you determine that a particular country has a sacrifice ratio of 3 . Policy-makers in that country are thinking of lowering the inflation rate from 10% to 4%. Is this sacrifice ratio higher or lower than the typical estimate? From your numbers, what is the amount of output that will be lost for this country to reduce its inflation rate?
a. The sacrifice ratio is higher than the typical estimate. It will cost 30% of annual output to reach the new inflation target. b. The sacrifice ratio is higher than the typical estimate. It will cost 18% of annual output to reach the new inflation target. c. The sacrifice ratio is lower than the typical estimate. It will cost 30% of annual output to reach the new inflation target. d. The sacrifice ratio is lower than the typical estimate. It will cost 18% of annual output to reach the new inflation target.