________ policy attempts to manipulate ________ in the economy
A) Monetary; price controls
B) Monetary; fiscal policy
C) Fiscal; overall spending
D) Fiscal; monetary policy
C
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When a bank needs to increase its reserves, it will
a. call in all its loans b. stop paying interest on its saving accounts c. borrow money from the government d. call in a loan or reduce new lending e. increase the number of loans it makes
According to real business cycle theorists
a. technology creates unemployment by displacing labor and this can spark the beginning of an economy's downturn b. firms that don't adopt the new, available technology cannot compete with firms that do and end up being driven out of business c. business cycles are inevitable because technological change is inevitable d. technology displaces labor, which reduces labor productivity which causes prices, profit, and GDP to fall e. technology displaces labor, increases labor productivity, and raises prices and profit, which stimulates firms to create even more technology
An decrease in equilibrium quantity would result from
A. an increase in demand with no change in supply. B. a decrease in supply with no change in demand. C. a decrease in demand with no change in supply. D. both a decrease in supply with no change in demand and a decrease in demand with no change in supply.
The transactionary demand for money is
(a) An active balance. (b) Directly related to interest rates. (c) Negatively related to income. (d) An idle balance