Which of the following is the most accurate description of events when monetary authorities increase the size of commercial banks' excess reserves?
A. A fall in interest rates decreases the money supply, causing an increase in investment spending, output, and employment
B. A rise in interest rates increases the money supply, causing a decrease in investment spending, output, and employment
C. The money supply is decreased, which increases the interest rate, and causes investment spending, output, and employment to decrease
D. The money supply is increased, which decreases the interest rate, and causes investment spending, output, and employment to increase
D. The money supply is increased, which decreases the interest rate, and causes investment spending, output, and employment to increase
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Kelly has received a $50 check from her Grandparents to help with her expenses at college. She has narrowed her choices of how to spend the money to three: a new backpack, a dinner out with a friend, a fleece vest. Of these she likes the vest best and the backpack least. What is her cost of buying the fleece vest?
a. $50. b. A new backpack. c. A dinner out with a friend. d. Nothing since the money was a gift to her.
Use the figure below to answer the following question.
If a price floor in this market is set at P2, then deadweight loss equals area
A. d. B. f. C. b + d. D. d + h.
The method of financing the Social Security system until 1983 is best described as
a. trust fund. b. excise tax. c. indirect tax. d. "pay as you go."
Usury laws are popular with ________.
A. the public and with economists B. the public, but not with economists C. economists, but not with public D. neither the public nor with economists