Which of the following will occur if the Fed raises the reserve requirement, ceteris paribus?
A. The aggregate supply curve should shift leftward.
B. The aggregate supply curve should shift rightward.
C. The aggregate demand curve should shift leftward.
D. The aggregate demand curve should shift rightward.
C. The aggregate demand curve should shift leftward.
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Which of the following goods has a perfectly inelastic supply?
A) insulin B) Diet Pepsi C) the original portrait of "Whistler's Mother" D) compact discs by Bush
If economic recovery has already occurred by the time the effects of expansionary monetary policy are felt, it could cause an inflation problem rather than curing a recession problem
a. True b. False Indicate whether the statement is true or false
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Suppose that when disposable income rises from 5.2 trillion to 6 trillion, consumption rises from 5 trillion to 5.6 trillion. What is the marginal propensity to save?
What will be an ideal response?