The slope of the LM is not influenced by
A) the gap between money demand and supply.
B) the interest rate sensitivity of money supply.
C) the interest rate sensitivity of money demand.
D) The slope of the LM curve is influenced by all of the above.
B
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If you deposit $20,000 in cash into a demand deposit account at a bank that faces an 18 percent required reserve ratio the result will be:
a. the bank will add $3,600 to its excess reserves. b. the bank will add $16,400 to its excess reserves. c. the bank will add $16,400 to its total reserves. d. the bank will add $20,000 to its excess reserves.
Recession
What will be an ideal response?
Referring to a production possibilities curve and the goods being compared, depict the economic event. Suppose the United States was at full employment in 2003 just before invading Iraq. Although the war was won quickly, winning the peace took a decade (guns vs. butter).
A. A movement from a point on or near the curve to a point inside the curve B. A shift in the entire curve to the right (outward) C. A shift in the entire curve to the left (inward) D. A movement along the curve
Publicly provided health insurance for the poor will
A. raise the price of health care to the non-poor. B. decrease the total amount of health care consumed. C. raise the price of health care to the non-poor and decrease the total amount of health care consumed. D. raise the level of health care consumed by the non-poor.