If interest rates increase, what will happen to the demand for reserves?
a. It will shift outward.
b. It will shift inward.
c. Nothing, the economy will move to a new quantity demanded.
d. It depends on what happens to prices.
c
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Suppose Ed Sike, whom you've met in chapter 8, loses one of his $10 bills. What directly happens to GDP?
A) It increases by ten dollars. B) It decreases by ten dollars. C) It decreases by more than ten dollars due to an unavoidable multiplier process. D) It remains unchanged.
If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was
A) 10.2 percent. B) 13.8 percent. C) 12.2 percent. D) 16.8 percent.
The optimal level of military expenditures is the level at which _____
a. a country is completely protected from foreign invasion b. a country spends more on national defense than all other countries along it to win an arms race c. a country spends more on national than its rivals d. the marginal benefit of additional expenditures equals marginal cost
Labor productivity depends on the
a. quality of the labor b. the effectiveness of government c. the proportion of the labor force that is unionized d. the size of the economy e. All of the answers are correct