As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. increases; decreases
B. does not change; does not change
C. increases; increases
D. decreases; increases
Answer: A
You might also like to view...
Which of the following is NOT an expected benefit of reducing nontariff barriers to trade?
A) Fewer firms to compete with B) Lower prices for many goods C) Increase in the volume of exports and imports D) Increase in production levels E) Improved overall economic welfare
A bank is reserve deficient when
A) its reserves fall short of the level determined by the required reserve ratio. B) its excess reserves are greater than its required reserves. C) its required reserves are greater than its excess reserves. D) it purchases government securities from the Fed.
Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5
The current year per unit prices of these three goods are A = $2, B = $3, and C = $1. (Advanced analysis) Refer to the information. If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is: A. $110. B. $115. C. $45. D. $160.
Related to the Economics in Practice on p. 590: The fact that recessions can be hard to forecast means that the
A. implementation lag is usually short. B. response lag is nonexistent. C. recognition lag can be long. D. recognition lag is usually short.