The money supply is ________ related to the nonborrowed monetary base, and ________ related to the level of borrowed reserves

A) positively; negatively
B) negatively; not
C) positively; positively
D) negatively; negatively


C

Economics

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If the government cuts income taxes, then the

a. investment curve will shift upward b. investment curve will shift downward c. consumption curve will shift downward d. consumption curve will shift upward e. economy will move to a new point along the existing consumption curve

Economics

In periods of generally rising prices,

a. real GDP will grow faster than nominal GDP. b. nominal GDP will grow slower than real GDP. c. real GDP will grow slower than nominal GDP. d. real GDP and nominal GDP will grow at the same rate.

Economics

Suppose we observe a decrease in the equilibrium price of tuna and an increase in the equilibrium quantity of tuna. This is best explained by:

A. a decrease in the cost of fuel used by tuna fishing boats. B. a decrease in the expected future price of tuna. C. an increase in the price of salmon, a substitute for tuna. D. a decrease in the tuna population in the oceans.

Economics

The quantity theory of money assumes that the velocity of money:

A. is constant. B. will rise if the money supply rises and fall if the money supply falls. C. will rise if the money supply rises, but it will not change if the money supply falls. D. will fall if the money supply rises, and it will rise if the money supply falls.

Economics