The demand for money curve
A. is positively related to the interest rate.
B. shows the relationship between the quantity of money balances demanded and the interest rate.
C. shows the relationship between money demanded and open market operations.
D. varies inversely with the supply of money.
Answer: B
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Which of the following is a factor determining the natural rate of unemployment?
A. real GDP B. the business cycle C. demographics D. the labor force participation rate
Which of the following will be included in the calculation of GDP using the expenditure method?
A) A bank's payment of interest to its customers B) A worker's wage C) A firm's payment of employee bonuses D) A domestic producer's export of clothes
If household incomes go up and almost all the increases are spent on consumer goods,
a. the marginal propensity to consume is high. b. the marginal propensity to consume is low. c. planned investment must be decreasing. d. the marginal propensity to save is high.
When do we say that a bank is loaned up?
a. When its debtors don't want to repay b. When it is susceptible to a bank panic c. When its excess reserves equal zero d. When it is part of a fractional reserve banking system e. When its required reserves are equal to its excess reserves