When demand increases,
a. consumers are willing and able to purchase more of the good at every price
b. consumers are willing and able to purchase less of the good at every price
c. there is a movement to the right along the demand curve
d. this is referred to as a change in quantity demanded
e. the price will tend to fall
A
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According to the real business cycle model
A) increases in aggregate demand do not affect GDP. B) increases in aggregate demand lower the price level. C) increases in aggregate demand raise GDP. D) increases in aggregate demand lower GDP.
Susan can bake 200 cookies in an hour or watch her favorite TV show. If she chooses to watch her show, her opportunity cost is
a. 200 cookies b. 100 cookies c. 150 cookies d. Need more information
Suppose that the Fed undertakes an open market purchase of $5 million worth of securities from a bank. If the required reserve ratio is 12%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves?
A) $4.17 million B) $7.95 million C) $5.68 million D) $41.67 million
Which of the following is an example of a bank's liabilities?
A) its reserves B) its loans C) checkable deposits D) its holdings of U.S. government bonds