On a bank's T-account, which are part of the bank's assets?
a. both deposits made by its customers and reserves
b. deposits made by its customers but not reserves
c. reserves but not deposits made by its customers
d. neither deposits made by its customers nor reserves
c
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Using the money demand and money supply model, an increase in money demand would cause the equilibrium interest rate to
A) increase. B) decrease. C) not change. D) increase, then decrease.
In an open economy, an increase in net exports because of increased demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Which of the following addresses agency costs
a. advertising for employee positions in as many outlets as possible b. requiring employees to punch time clocks c. instituting longer work days d. reducing the number of holidays
The expenditure line in the Keynesian cross diagram represents the:
A. equilibrium condition that Y = Y*. B. relationship between consumption and after-tax disposable income. C. relationship between planned expenditure and output. D. equilibrium condition that Y = PAE.