Which of the following would lead to a rapid growth of the money supply in the future?
a. the use of large excess reserves by banks to extend additional loans
b. a reduction in government expenditures to reduce the size of the federal deficit
c. an increase in government expenditures financed by taxes
d. an increase in the interest rate the Fed pays banks holding excess reserves
A
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Refer to the figure below. An increase in demand is represented by a shift from: 
A. curve D to curve C. B. curve A to curve B. C. curve C to curve D. D. curve B to curve A.
Consumers are often somewhat insensitive to changes in the price of table salt because
A) the proportion of their budget spent on salt is very low. B) there are a considerable number of good substitutes for salt, in their opinion. C) they are not used to changes in the price of salt. D) salt is a necessity for a complete dining experience. E) all of the above reasons.
An increase in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate B) right; depreciate C) left; appreciate D) left; depreciate
Colonists supporting the American Revolution (1775–1781)
(a) were well-prepared and well-organized. (b) comprised at least two-thirds of the total colonial population. (c) faced lower transportation and communication costs than the British during the war. (d) were able to tax the colonists to finance the war.