The lower the nominal interest rate, the
A) greater the quantity of money supplied.
B) greater the demand for money.
C) smaller the demand for goods and services.
D) smaller the quantity of money demanded.
E) greater the quantity of money demanded.
E
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If the minimum efficient scale of a firm is small relative to the demand for the good, then
A) many small firms can compete in the market. B) several large firms will enter the market thereby reducing competition. C) there will be no economic profits for any small firms, so no new firms will ever enter the market. D) the firms already in the market have lower average total cost than any new firm entering the market.
What happens to economic growth and unemployment during a business cycle recession? What is the relationship between the money growth rate and a business cycle recession?
What will be an ideal response?
Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.73 to 0.78 B) decrease from 0.73 to 0.61 C) increase from 1.54 to 1.67 D) decrease from 1.67 to 1.54
In 2009, C was closest to, but under
A. $4 trillion B. $6 trillion C. $80 billion D. over $10 trillion