When the Fed sells government securities, the banks':
A. reserve requirements will increase and lending will contract, causing a decrease in the money supply.
B. reserves will increase and lending will expand, causing an increase in the money supply.
C. reserves/deposit ratio will increase and lending will expand, causing an increase in the money supply.
D. reserves will decrease and lending will contract, causing a decrease in the money supply.
Answer: D
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The value of goods produced, but unsold, in the current period is:
A. allocated to GDP in future periods when the goods are sold. B. counted in GDP as consumption spending. C. excluded from GDP. D. counted in GDP as inventory investment.
Which of the following is TRUE?
A) MPC - MPS = 1 B) MPC + MPS = 1 C) MPC * MPS = 1 D) MPC / MPS = 1
Why hasn't the U.S. ratified the Kyoto Protocol?
a. It views the agreement as not merely flawed or incomplete, but actually harmful. b. It fears the economic consequences of reducing fossil fuel use. c. It does not consider the environment a major priority. d. Its leaders and politicians overwhelmingly believe global warming is not a real threat.
If the price of DVD rentals doubles, the quantity demanded will _____ and the quantity supplied will _____.
Fill in the blank(s) with the appropriate word(s).