According to the income-expenditure approach, ________ reduce consumption and other elements of aggregate expenditures, resulting in a ________ in real GDP demanded. Thus the aggregate demand curve is ________
a. lower prices; decrease; upward-sloping
b. higher prices; increase; downward-sloping
c. higher prices; decrease; downward-sloping
d. higher prices; increase; upward-sloping
c
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If the Fed wishes to slow economic activity, it might actively pursue:
A. expansionary fiscal policy. B. expansionary monetary policy. C. contractionary fiscal policy. D. contractionary monetary policy.
If a bank has $1 million in demand deposits, $350,000 in reserves, and faces a 30 percent reserve requirement, the amount of money that a bank could initially create by loaning out their excess reserves is: a. $50,000
b. $300,000. c. $350,000. d. $700,000.
The central institution through which a laissez-faire system answers the basic economic questions is the
A. tribal council. B. market. C. government. D. central planning body.
Members of the Federal Reserve Board of Governors are appointed to 14-year terms to provide a level of isolation from political influence.
a. true b. false