Under the reasonable dynamic assumptions discussed in the text, a monetary contraction should result in
A) an immediate rise in the interest rate, and no further interest rate changes.
B) an immediate rise in the interest rate, and then a fall in the interest rate over time.
C) an immediate rise in the interest rate, and then a further rise over time.
D) a very gradual but steady rise in the interest rate to its new equilibrium level.
E) no change in the interest rate initially, and then a sudden rise to its new equilibrium value.
B
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A) educational functions B) market growth C) human capital D) innovation
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What are these points called? A) decision options B) decision nodes C) option points D) either-or terminals
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a. means of payment. b. unit of account. c. store of purchasing power. d. form of plastic money.
If banks face a reserve requirement of 10%, then when the Fed increases bank reserves by $20 million, the money supply can be estimated to increase by about
A. $2 million. B. $20 million. C. $200 million. D. None of the choices are correct.