The balance of payments ____________
a. is always zero
b. is always one
c. is positive when the nation has a trade surplus
d. is negative when the nation has a trade deficit
e. is positive when the nation has a trade deficit
A
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Because an increase in the nominal interest rate raises the opportunity costs of holding money, the money demand curve:
A. shifts to the right. B. slopes downward. C. shifts to the left. D. slopes upward.
Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds $50 million in reserves. How much more money could the bank create if it does not hold excess reserves?
A. $25 million B. $50 million C. $5 million D. $30 million
Why does the Fed attempt to achieve a low, stable rate of inflation rather than an inflation rate of 0%?
What will be an ideal response?
People:
A. always have access to complete information. B. rarely have access to complete information. C. never have access to complete information. D. often have access to complete information.