Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?

a. Open market purchases of government securities by the central bank.
b. An increase in the discount rate.
c. A reduction in the reserve ratio by the central bank.
d. A reduction in the preferred asset ratio for currency in circulation (C/D), due to a shift in household preferences.
e. All of the above increase the supply.


.B

Economics

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Resources are efficiently utilized when production is such that marginal social benefit

A) is equal to marginal social cost. B) exceeds marginal social cost by as much as possible. C) is less than marginal social cost. D) None of the above because efficiency has to do with property rights and has nothing to do with marginal social benefit or marginal social cost.

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What are the two main components of business cycle theories?

A) A description of shocks and a model of how the economy responds to them B) A model of how people decide to spend and a description of the government's role in the economy C) A model of how equilibrium is reached and a description of the government's role in the economy D) A description of shocks and a description of the government's role in the economy

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To an economist, a decrease in supply means a: a. rightward shift of the supply curve

b. movement up along a supply curve. c. leftward shift of the supply curve. d. movement down along the supply curve.

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