Based on the model of the money market, if the Federal Reserve increases the reserve requirement, the equilibrium interest rate should
A) stay the same.
B) increase.
C) decrease.
D) increase to the same extent that the demand for money increases.
B
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If, by law, we suppress free market prices to determine who gets what,
A) other criteria will come into play to ration scarce goods. B) scarcity will be reduced or eliminated. C) shortages will be reduced or eliminated. D) there will be no alternative way to make the quantity demanded conform to the quantity supplied.
If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals
A) 225. B) 250. C) 300. D) 450.
A regular payment received by stockholders for each share they own is called a:
A. bond. B. dividend. C. capital gain. D. coupon payment.
An increase in the aggregate demand curve will, in the short run, change:
A. output but not price level. B. both output and the price level. C. the price level but not output. D. neither output nor the price level.