The reserves supply schedule has a positive slope because
A. the Fed lowers the discount rate as interest rates rise.
B. the Fed makes more money available at higher interest rates.
C. as interest rates rise, banks will find loans more profitable.
D. as interest rates rise, people will demand more loans.
Answer: C
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An increase in the taxes paid by consumers shifts the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
Capital has a life that typically
A. extends over many years. B. expires as it is being used. C. lasts for less than 1 year. D. never expires.
Marginal revenue
a. Is the additional revenue earned by selling one more unit b. Is always equal to the total revenue c. Is the difference between total revenue and total costs d. None of the above
All of the following are sources of negative externalities except one. Which is the exception?
a. a paper mill that pollutes a river b. a person who throws a beer can out the window of a moving car c. cars, which emit carbon monoxide d. a solar water heater which is outside and obscure from view e. products that contribute to the greenhouse effect