If savers do not have fixed savings goals, the supply curve of loanable funds will generally be
A. horizontal.
B. downward sloping.
C. vertical.
D. upward sloping.
Answer: D
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Assume the desired reserve ratio is 10 percent, banks loan all excess reserves and the currency drain is zero. If the Fed sells $100 million of U.S. government securities to Boise Bank, the monetary base increases by
A) $1 million. B) $10 million. C) $100 million. D) $1,000 million. E) $90 million.
In the last few decades, income inequality in the United States has ___________ mostly because of the ____________
A. increased; poor getting poorer. B. increased; gains by the rich. C. decreased; gains by the poor. D. decreased; stagnation by the economy in general.
Compared to 1968, in 2008 income distribution would be considered
A. much more equal. B. somewhat more equal. C. about as equal. D. Much less equal.
An increase in the government's budget deficit ________ the real interest rate and ________ the equilibrium quantity of national saving.
A. increases; decreases B. increases; increases C. decreases; decreases D. decreases; increases