The intertemporal budget constraint is defined as:
A) DP + DF/(1 + r) = QP + QF/(1 + r)
B) V = QP + QF/(1 + r)
C) V = DP + DF/(1 + r)
D) DF + DP/(1 + r) = QF + QP/(1 + r)
E) DP + DF(1 + r) = QP + QF(1 + r)
A
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A) supply curve to the left. B) supply curve to the right. C) demand curve to the left. D) demand curve to the right.
The Argentinian crisis of 2001 was characterized by:
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A. of commercial banks are unchanged, but their reserves increase. B. and reserves of commercial banks both decrease. C. of commercial banks are unchanged, but their reserves decrease. D. and reserves of commercial banks are both unchanged.
If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when ________.
A. investment demand decreases B. the demand for money increases C. the demand for money decreases D. investment demand increases