Everything else held constant, an increase in the required reserve ratio will result in ________ in M1 and ________ in M2
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
D
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Which of the following could best be categorized as a public good?
A) an apartment in a public housing project B) a pumpkin pie C) public fireworks D) a race track
If net exports are negative, then aggregate demand will be less than the sum of consumption, investment, and government purchases
a. True b. False Indicate whether the statement is true or false
The market demand is the
a. sum of all individual demands in a market b. sum of all individual prices in a market c. sum of all individual demands and supplies in a market d. vertical sum of all individual demands e. horizontal sum of all individual prices
Which of the following contributed to the weak recovery from the 2008-2009 recession?
a. Government stimulus spending that was largely temporary and often directed toward unproductive activities. b. The restrictive monetary policy followed by the Fed. c. The tax increases instituted by a Congress intent on balancing the budget. d. The failure of the Fed to provide the banking system with sufficient reserves for the extension of new loans.