If the Fed increases the supply of bank reserves, ________
A) consumption falls B) investment falls
C) the federal funds rate falls D) the inflation rate falls
C
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What's the difference between firm-specific risk and market risk? Will diversification eliminate one or both? Explain
Classical economists and monetarists perceive
A. investors' expectations about returns on investment as unstable. B. large investment swings as responses to small changes in interest rates. C. that the best way to cure unemployment is to start a war. D. that the proper cure for unemployment is active fiscal policy.
Who officially determines whether the economy is in a recession or expansion?
A. The U.S. Congress B. The National Bureau of Economic Research C. The president of the United States D. The Federal Reserve Board of Governors
Which of the following is most characteristic of most developing nations?
A. Roughly equal distribution of income among the population B. High levels of labor productivity in agriculture C. Low propensity to consume goods and services D. Low levels of saving and investment