Suppose the Federal Reserve raised the required reserve rate. This would lead to an increase in _____.
a. interest rates
b. inflation
c. deficits
d. aggregate demand
Ans: a. interest rates
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A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are
a. proprietary and common knowledge. b. common, but not proprietary, knowledge. c. proprietary, but not common, knowledge. d. neither proprietary nor common knowledge.
Which of the following is an example of U.S. foreign portfolio investment?
a. A U.S. legal office opens a branch office in Holland. b. Erica, a U.S. resident, buys bonds issued by the Swiss government. c. Both A and B are examples of U.S. portfolio investment. d. Neither A nor B are examples of U.S. portfolio investment.
According to Keynes, what is the most important determinant of households' spending on goods and services?
A. the price level B. the interest rate C. autonomous consumption D. disposable income
If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that:
A. it is colluding with its rivals to maximize joint profits. B. its demand curve is kinked. C. it is selling a standardized product. D. it is selling a differentiated product.