If banks' desired reserve ratio increases from 0.10 to 0.15, the public still desires to hold the same amount of currency, the money supply will:
A. not change.
B. either increase or decrease.
C. decrease.
D. increase.
Answer: C
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If households' disposable income decreases, then
A) households' saving will decrease. B) households' saving will increase. C) investment will increase. D) Both B and C are correct.
Which of the following is not one of the leading indicators?
A) index of consumer expectations, U. of Michigan B) change in consumer price index for services C) vendor performance, slower deliveries diffusion index D) manufacturers' new orders, nondefense capital goods
If a pre -merger Herfindahl-Hirschman Index (HHI) is between ________, the market is considered moderately competitive and if a merger in this market raises the HHI by more than ________, antitrust agencies worry about the potential loss of competition.
A) 1,500 and 2,500; 50 B) 2,500 and 5,500; 100 C) 2,500 and 5,500; 25 D) 1,500 and 2,500; 100
Which of the following is an example of a fiscal policy?
a. Raising the discount rate b. Reducing the reserve requirement c. Reducing government spending d. Pegging the currency