A surplus occurs whenever
a. current price is greater than equilibrium price
b. quantity supplied exceeds quantity demanded at the equilibrium price
c. quantity demanded is greater than quantity supplied
d. the problem of scarcity of a good is solved
e. some buyers would be willing and able to pay even more for it than they have to at equilibrium
A
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When Zane deposits $20,000 cash in his checkable deposit at the Citicorp and the Citicorp's desired reserves increase by $5,000, the desired reserve ratio is
A) 25 percent. B) 75 percent. C) 5 percent. D) 20 percent. E) $5,000.
RBC theorists claim that adverse supply shocks can take forms other than rising raw materials prices. One such shock comes from government policy:
A) reductions in government expenditure. B) increases in tax rates. C) more rigorous environmental regulation. D) reductions in the money growth rate.
The supply of foreign exchange to the United States is generated by the desire for foreigners to acquire dollars for all except one of the following reasons. Which is the exception?
a. The United States is considered a safe haven in times of political unrest. b. The dollar has long been accepted as an international medium of exchange. c. Foreigners want to buy U.S. assets. d. U.S. goods have become less attractive to foreigners. e. Foreigners wish to make cash gifts to family in the United States.
A fall in price level will:
a. shift the aggregate demand curve to the right b. shift the aggregate demand curve to the left c. result in a movement upward along the aggregate demand curve d. result in a movement downward along the aggregate demand curve e. change the slope of the aggregate demand curve