A decrease in the reserve requirement
A) decreases the money supply, which leads to decreased interest rates and a rise in investment spending.
B) increases the money supply, which leads to increased interest rates and a fall in investment spending.
C) increases the money supply, which leads to decreased interest rates and a rise in investment spending.
D) decreases the money supply, which leads to increased interest rates and a fall in investment spending.
C
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The relationship between quantity demanded and price is a(n) ________ relationship.
A. general B. inverse C. dictated D. direct
How is economic profit calculated?
What will be an ideal response?
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Capital flight refers to:
A. the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper. B. DVC citizens accumulating or investing their savings in the IACs. C. the high international mobility of speculative funds caused by variations in exchange rates. D. the tendency of DVCs to overinvest in commercial aircraft.