In the United States there were legal reserve requirements on time and savings deposits during most of the post-World War II period. Therefore, the money multiplier for the M1 definition was
a. smaller when time and saving deposits increased.
b. smaller when time and saving deposits were assumed to be fixed.
c. larger when time and saving deposits increased.
d. smaller when time and saving deposits decreased.
A
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A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________
A) fewer; fall B) fewer; rise C) more; fall D) more; rise
The net effect of restricting entry into a market is to decrease the income of the remaining suppliers.
Answer the following statement true (T) or false (F)
The equation of exchange is written as
A. M× V = P× Y. B. M× P = V× Y. C. M× Y = P× V. D. M× Y = Y× P.
When a rise in the price of one item results in a decrease in the demand for another good, then the two goods are
A) substitute goods. B) complementary goods. C) inferior goods. D) satisfying the law of supply.