The equilibrating force in the credit market in the classical model is
A) the interest rate.
B) the price level.
C) full employment.
D) fiscal policy.
A
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How can the U.S. federal government induce increases in the national saving rate?
A) by lowering the sales tax B) by levying taxes on individual retirement (IRA) accounts C) by reducing budget deficits D) all of the above E) none of the above
If the Fed lowered the required reserve ratio,
a. excess reserves would decrease b. the money supply would decrease c. the money supply would increase d. banks would borrow more from the Fed e. loans would earn more interest
Distinguish between invention and innovation.
What will be an ideal response?
Explain why the scarcity of resources causes people and nations to consider opportunity costs and trade-offs among choices. Give a personal example of an opportunity cost that you have faced and the impact of the decision you made.