fill in the blanks: Other things constant, when households decide to save more, the supply of credit ________ and interest rates ________.
A. falls; fall
B. rises; fall
C. falls; rise
D. rises; rise
Answer: B. rises; fall
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In the foreign exchange market, the exchange rate is volatile because the
A) factors that influence the supply of dollars also influence the demand for dollars. B) demand for dollars changes more frequently than the supply of dollars. C) both the demand curve for dollars and the supply curve of dollars are very flat. D) supply of dollars changes more frequently than the demand for dollars. E) None of the above is related to the volatility of the exchange rate.
An increase in the demand curve for orange juice would be illustrated as a
A) leftward shift of the demand curve. B) rightward shift of the demand curve. C) movement up along the demand curve. D) movement down along the demand curve.
In which of the following ways can a corporation raise new funds for investment? I. Issuing new shares of stock II. Having existing stock resold between two owners
A) I only B) II only C) Both I and II D) Neither I nor II
An increase in the price level is likely to increase the aggregate amount of output supplied in the short run because
A. wages change in the short-run. B. wages are sticky in the short-run. C. the aggregate supply curve is vertical in the short-run. D. interest rate is high in the short-run.