A decline in money supply will lead to a(n) ________ if nominal wages are rigid
A) increase in labor demand B) fall in real wages
C) fall in labor demand D) increase in real output
C
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The income effect of a higher real wage on the quantity of labor supply is the
A) idea that workers feel psychologically wealthier when wages are higher, so they work more. B) effect that income must rise when wages rise. C) tendency of workers to supply more labor in response to becoming wealthier. D) tendency of workers to supply less labor in response to becoming wealthier.
Referring to the graph above, a movement from point H to point I might represent ________
A) the increase in the inflation rate that occurs when the real interest rate rises B) the automatic response of monetary policy to an increase in the inflation rate C) an autonomous tightening of monetary policy D) any of the above E) none of the above
Funds that earn a fixed rate of interest and must be held for a stipulated period of time are known as
a. check able deposits. b. time deposits. c. savings deposits. d. money market funds.
The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,
a. expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans. b. reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply. c. expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves. d. reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.