If the quantity of bank reserves held at the Fed increases, ________
A) the real interest rate increases B) bank deposits decrease
C) the number of loans issued by banks decrease D) inflation increases
D
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Opportunity cost always arises when a trade-off decision is made
a. True b. False Indicate whether the statement is true or false
Assume that the United States imposes a quota on Scottish wool suits. Relative to the equilibrium price that would exist in the absence of quotas, the equilibrium price of suits in the United States will most likely _______ , and the equilibrium price of suits in Scotland will most likely _______ .
A) remain the same; decrease B) remain the same; increase C) increase; increase D) increase; decrease
Exhibit 9-6 Keynesian aggregate expenditure model when the MPC is 2/3
?
The economy shown in Exhibit 9-6 has a recessionary gap of:
A. $1 trillion. B. $2 trillion. C. $3 trillion. D. $5 trillion.
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices (including your salary) triple in the next 10 years, what will your nominal annual salary be in 10 years?
A. $20,000 B. $60,000 C. $120,000 D. $180,000