Assuming all else equal, if there is a contraction in the quantity of bank account balances, it will cause:
A) a downward movement along the demand curve for reserves.
B) a leftward shift in the demand curve for reserves.
C) a rightward shift in the demand curve for reserves.
D) an upward movement along the demand curve for reserves.
B
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Real GDP will increase
A) only if the quantity of final goods and services produced rises. B) if either the price level rises or the quantity of final goods and services produced rises. C) only if the price level rises. D) only if the price level falls.
Describe the differences between classical and Keynesian economists in terms of their views about monetary neutrality
What will be an ideal response?
If the MPC = .75, the spending multiplier is:
a. 4. b. 5. c. 1.33. d. 1.20. e. .25.
"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is: a. $4
b. $40. c. $44. d. $0.