Which of the following reduces the money multiplier?
A) Banks loan all their excess reserves.
B) Bank customers hold some of the loan proceeds as currency outside the banking system.
C) The Fed reduces the required reserve ratio.
D) Banks impose a currency drain on bank customers.
E) The Fed sells U.S. government securities.
B
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Which of the following would cause a rightward shift in the investment demand curve?
a. An increase in the interest rate. b. An increase in the rate of capacity utilization. c. An increase in households' disposable income; d. An increase in business taxes.
If Mexico's GDP drops, which of the following will happen in the market for pesos?
a. A rightward shift of the supply curve, a depreciation of the peso, and a larger number of pesos traded b. A rightward shift of the demand curve, a depreciation of the peso, and a smaller number of pesos traded c. A rightward shift of the demand curve, an appreciation of the peso, and a larger number of pesos traded d. A leftward shift of the demand curve, a depreciation of the peso, and a smaller number of pesos traded e. A leftward shift of the supply curve, an appreciation of the peso, and a smaller number of pesos traded.
The opportunity cost of slowing global warming by reducing carbon dioxide emissions is
a. extremely high because policies that would significantly reduce emissions will adversely affect economic growth. b. insignificant compared to the probable impact of warming from those emissions. c. irrelevant because each aspect of the environment is important enough to justify full protection from environmental change, at whatever cost is necessary. d. zero because fuel cost savings alone will offset all opportunity costs.
Increased production, but not increased inflation, will result in higher:
A. nominal GDP. B. money GDP. C. real GDP. D. current dollar GDP.