If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves, the money supply expands
Indicate whether the statement is true or false
TRUE
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A contract that requires the investor to buy securities on a future date is called a
A) short contract. B) long contract. C) hedge. D) cross.
Most economists believe the severity and duration of the Great Depression was primarily the result of
a. the large budget deficits of the federal government. b. the reduction in tariffs and the influx of foreign imports during the early 1930s. c. the excessive use of credit cards. d. a sharp contraction in the money supply.
According to the Ricardian equivalence theorem, budget deficits resulting from tax cuts
A. have no effect on aggregate demand. B. affect only aggregate supply. C. increase aggregate demand. D. increase both aggregate demand and aggregate supply.
When Toyota introduced its 2010 Prius, it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model. Which of the following would explain the price differential?
A) The supply of the Prius had decreased, and the demand for the Prius remained unchanged. B) The demand for the Prius had increased, and the supply of the Prius remained unchanged. C) The demand for the Prius had decreased, and the supply of the Prius had increased. D) The demand for the Prius had increased, and the supply of the Prius had decreased.