In the long-run, an increase in aggregate demand increases the price level, but not real GDP
a. True
b. False
Indicate whether the statement is true or false
True
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The declining trend in the currency-deposit ratio during 2007-2014 can be explained by
A) the increased holdings of U.S. currency by foreigners. B) bank panics. C) a drop in the rate of interest paid on checking deposits. D) the increasing use of debit cards.
The opportunity cost of going to the movies is always the same for everyone
a. True b. False Indicate whether the statement is true or false
To decrease the nation's money supply, the Fed can:
A. decrease the reserve requirement. B. buy bonds. C. decrease the discount rate. D. increase the discount rate.
In January of 2006, the Federal Reserve
A. increased its target federal funds rate by a smaller amount than it had in several years. B. increased its target federal funds rate by a larger amount than it had in several years. C. increased its target federal funds rate by the same amount as it had in recent years. D. left its target federal funds rate unchanged.