The more liquid markets are the:
A. more people are willing to save, and the higher the amount of investment occurs.
B. less people are willing to save, and the higher the amount of investment occurs.
C. more people are willing to save, and the lower the amount of investment occurs.
D. less people are willing to save, and the lower the amount of investment occurs.
A. more people are willing to save, and the higher the amount of investment occurs.
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If the long-run aggregate supply curve is vertical
A) the short-run Phillips curve must be vertical. B) the economy stays at the natural rate of inflation in the long run. C) the trade-off between unemployment and inflation cannot be permanent. D) unemployment and inflation are positively related in the long run.
Large-denomination CDs are ________, so that like a bond they can be resold in a ________ market before they mature
A) nonnegotiable; secondary B) nonnegotiable; primary C) negotiable; secondary D) negotiable; primary
If the managers of a theater plan to raise ticket prices to increase ticket revenues, then they must believe that demand is
a. elastic b. inelastic c. unit elastic d. perfectly elastic e. income elastic
Assume that the Paris First National Bank's loan position contracted from $16 million to $12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
a. $5 million. b. $10 million. c. $15 million. d. $20 million. e. $24 million.