Which of the following will shift the consumption function upward?
a. A decrease in disposable income
b. An increase in disposable income
c. An increase in the interest rate
d. Expectations of lower future prices
e. An increase in net wealth
e
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Based on the above table, an open market operation in which the Fed purchased $100,000 of government securities would
A) lead to a maximum potential expansion of the money supply of $1 million. B) create a reserve deficiency for the banking system. C) cause demand deposits to fall by $100,000. D) lead to a maximum potential expansion of the money supply of $100,000.
Small differences in annual growth rates accumulate into:
A. Small differences in GDP. B. Large differences in GDP. C. A leftward shift of the aggregate demand curve. D. An increase in population.
Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital, ________
A) the wages of these two groups are the same B) men earn significantly more than women C) women earn significantly more than men D) men specialize more in home production
A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?
a. $700,000; $700,000 b. $700,000; $7,000,000 c. $300,000; $300,000 d. $300,000; $3,000,000