The law of demand implies that the demand curve is Question 20 options:
A. downward sloping.
B. upward sloping.
C. downward sloping at high prices and upward sloping at low prices.
D. upward sloping at high prices and downward sloping at low prices.
A. downward sloping.
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In order to support an undervalued euro, the European Central Bank must ________ dollars. Over time, this action will cause the rate of inflation in the EU to ________
A) buy; increase B) sell; increase C) buy; decrease D) sell; decrease
In the Keynesian model, money is
A) neutral in both the short run and the long run. B) neutral in neither the short run nor the long run. C) neutral in the short run, but not in the long run. D) neutral in the long run, but not in the short run.
Which of the following directs the buying and selling of U.S. government securities?
a. Board of Governors. b. Federal Reserve Banks. c. Federal Open Market Committee. d. Federal Advisory Council. e. Member banks.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period and real GDP remain the same. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The quantity of real loanable funds per time period falls, and real GDP falls. d. The quantity of real loanable funds per time period rises, and real GDP falls. e. The quantity of real loanable funds per time period falls, and real GDP rises.