When real GDP increases, the demand for money ________ and the demand for money curve ________
A) does not change; does not shift
B) increases; shifts rightward
C) increases; shifts leftward
D) decreases; shifts leftward
E) decreases; shifts rightward
B
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Auditors working for a large accounting firm are often away from the office. When they are in the office, they are allowed to use any desk that is available. Which method is used to allocate desks?
A) lottery B) first-come, first-served C) command D) contest E) sharing equally
In Figure 4-5 above, people would be trying to increase their holdings of money at
A) points A and E. B) points B, E, and C. C) point A. D) points A and B. E) point D.
Without trade, the consumption possibilities for two nations are:
a. outside their production possibilities curve. b. inside their production possibilities curve. c. along their production possibilities curve. d. at a point equal to the world production possibilities curve.
A commercial bank has $1,000,000 of outstanding demand deposits and actual reserves of $300,000 . If the required reserve ratio is 20 percent, what is the maximum amount of new loans the bank can extend?
a. zero b. $100,000 c. $300,000 d. $700,000