If the Fed reduces the supply of bank reserves, ________
A) investment increases B) consumption increases
C) the federal funds rate increases D) the federal funds rate falls
C
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If the value of a price index was 125 for 2005 and 75 for 1982, and GDP was 2500 in 2005 compared to 600 in 1982, the value of real 2005 GDP in terms of 1982 prices is
a. 1500. b. 1000. c. 2500. d. 360.
The law of demand tells us that people will buy more of a good if
A) the price of that good decreases. B) the prices of other goods decrease. C) people's income increases. D) every factor that can affect people's buying decisions changes.
The total physical product increases initially at an increasing rate, and then, because of the law of diminishing returns, at a decreasing rate
Indicate whether the statement is true or false
Territorial division among firms in an industry would lead to price and output behavior similar to
A. monopolistic competitors. B. a regional monopoly. C. cutthroat competitors in an oligopolistic market. D. perfect competitors.