An increase in income will cause
A) a reduction in the supply of central bank money.
B) a reduction in the demand for currency.
C) a reduction in the demand for reserves.
D) none of the above
E) both B and C
D
You might also like to view...
If the marginal propensity to consume is 0.6 and investment spending declines by $50 billion, by how much will equilibrium output change?
a. -$125 billion b. -$83.3 billion c. -$50 billion d. $83.3 billion e. $125 billion
In 1862, the Homestead Act made land available to farmers at zero cost. Yet many farmers preferred to purchase land along the rail line from the railroad. The farmers
a. were duped by the railroads. b. knew the soil was better near the railroads. c. realized that crops would be less costly to grow and transport on land near the railroads. d. were exploited by the railroads.
Which of the following is true about stagflation?
A. It causes higher prices and lower unemployment. B. It can be corrected by increases in aggregate supply. C. It results in a lower value of the misery index. D. It can be corrected by demand-side policies.
If the annual interest rate is 0 percent, the present value of receiving $210 in the next year is:
A. $200. B. $201. C. $221. D. $210.