When people withdraw money from their deposits in the banking system, the:
A. Excess reserves of the banking system will decrease
B. Excess reserves of the banking system will increase
C. Excess reserves of the banking system will not be affected
D. Money supply will immediately decrease
A. Excess reserves of the banking system will decrease
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If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the short run before the expected inflation rate changes, the SRPC ________ and the LRPC ________
A) shifts downward; shifts leftward B) shifts downward; does not change C) does not change; shifts rightward D) shifts upward; does not change E) does not change; does not change
According to your textbook, a "free" good is
A) a good paid for by someone else. B) a stolen good. C) a good given away by charities. D) a good obtained without any sacrifice whatsoever.
If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country
A) can consume more than they could without trade. B) can produce more than they could without trade. C) will have a lower standard of living. D) will be exploited by the second nation.
Which of the following would most likely shift the D curve for fresh strawberries being sold in a grocery store (a normal good) to the right?
a) Increase in the S of strawberries. b) Decrease in the P of strawberries. c) Decrease in the P of a complement (e.g. ice cream or strawberry shortcake). d) All of the above. e) None of the above.