A decrease in the excess reserves banks want to hold, together with people taking currency out of their demand deposit accounts, would:
a. increase the money supply
b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.
d
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Refer to the scenario above. Suppose the decision to levy a tax on emission of greenhouse gases costs 500 utils in present value and that the discount weight attached to the future benefit is 1/17
In this case, the net benefit earned by the people is: A) -300 utils. B) -441.18 utils. C) 333.65 utils. D) 420 utils.
Graphically, the market supply curve is obtained by
A) changing the ceteris paribus conditions. B) a change in quantity supplied. C) horizontally summing quantity supplied at various prices for individual producers. D) vertically summing quantity supplied at various prices for individual producers.
If each of us relied exclusively on the market to determine what to buy, we would probably end up with few, if any
a. streetlights b. strawberries c. CDs d. raincoats e. televisions
According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:
A. the horizontal portion of the aggregate supply curve. B. the vertical portion of the aggregate supply curve. C. the upward sloping portion of the aggregate supply curve. D. either the horizontal or upward sloping portion of the aggregate supply curve.