Which of these changes is observed in an economy when a recessionary gap is closed in the long run?
What will be an ideal response?
an increase in the level of output and a decrease in the price level
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If the expected value of the U.S. dollar rises, one would expect ________
A) a decrease in the demand for dollars B) an increase in the demand for the dollar C) an increase in U.S. income D) an increase in federal income tax rates
If the required reserve ratio decreases, the:
a. money multiplier increases. b. money multiplier decreases. c. amount of excess reserves the bank has decreases. d. money multiplier stays the same. e. amount of excess reserves stays the same.
Which of the following assets is most liquid?
a. funds in a checking account b. a car c. ten acres of land d. a television
______________ can model a change in conditions which affects many, if not all, markets in the economy
Fill in the blank(s) with the appropriate word(s).