If the price level rises, what will happen to the demand for reserves?
A. It will shift outward.
B. It will shift inward.
C. It will remain unchanged.
D. It depends on what happens to interest rates.
Answer: A
You might also like to view...
In? 2003, China's control of the value of the yuan became an economic and political issue for the U.S.? because:
A) increased U.S. exports to China. B) decreased U.S. exports to China. C) increased China imports from the U.S. D) none of the above.
Explain the essential difference between games in which moves are simultaneous and those in which moves are sequential
What will be an ideal response?
Briefly explain what the sacrifice ratio is and how policy makers can use it in their decision making. Then give an example of policymaking using the sacrifice ratio that highlights the limits of this tool.
What will be an ideal response?
According to the equation of exchange, if V = 10, P = 3, and Y = $100, then the money supply equals
A. $10. B. $15. C. $30. D. $150.