The demand for money curve
A) shows the relationship between money demanded and open market operations.
B) shows the relationship between the quantity of money balances demanded and the interest rate.
C) is positively related to the interest rate.
D) varies inversely with the supply of money.
B
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If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output and prices. B. lower level of output and prices. C. higher level of output at lower prices. D. lower level of output at higher prices.
Which of the following could lead to a bank's failure, even if the bank has positive net worth?
a. The bank may encounter difficulty selling its government bonds. b. Most of the bank's liabilities are illiquid. c. A bank with positive net worth cannot fail. d. The bank may encounter difficulty borrowing reserves from the Federal Reserve. e. Most of the bank's assets are illiquid.
The unemployment rate in the United States at the peak of the Great Depression was ________ percent.
A. 10 B. 25 C. 20 D. 5
An increase in tariffs on imported goods will shift the aggregate supply curve to the left and cause the level of output to decrease.
Answer the following statement true (T) or false (F)