An increase in U.S. Treasury deposits at the Fed reduces both ________ and the ________
A) reserves; monetary base
B) Fed liabilities; money multiplier
C) Fed assets; monetary base
D) Fed assets; money multiplier
A
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Empirical evidence suggests that saving tends to rise when there is an increase in interest rates. What does this imply about the relative sizes of the income and substitution effects? Explain
What will be an ideal response?
________ is equal to consumption spending plus planned investment spending plus government purchases plus net exports
A) Planned aggregate expenditure B) Planned inventory investment C) Full employment GDP D) Short-run aggregate supply
The Leontief paradox can be summarized as the finding that U.S. exports tend to come from capital-intensive industries, while U.S. imports are produced using relatively labor-intensive techniques
Indicate whether the statement is true or false
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8 The firm's isocost line could shift from AB to CD if
A. the price of capital increased. B. the price of capital and labor each decreased by 33%. C. the firm's total expenditures decreased by 25%. D. the firm's total expenditures increased by 33% or the price of capital and labor each decreased by 25%.