When the Federal Reserve raises the federal funds rate, the quantity of reserves ________, the quantity of money ________, and the quantity of loans ________
A) increases; increases; increases
B) decreases; decreases; decreases
C) increases; increases; decreases
D) decreases; decreases; does not change
E) decreases; does not change; does not change
B
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If a government has a budget deficit, it must
A) decrease its expenditures. B) borrow in the loanable funds market. C) decrease taxes. D) increase taxes. E) lower the real interest rate.
If the dollar depreciates relative to the Swiss franc
A) Swiss chocolate will become cheaper in the United States. B) American computers will become more expensive in Switzerland. C) Swiss chocolate will become more expensive in the United States. D) Swiss computers will become cheaper in the United States.
Money has to be a precious metal, since precious metals have all of the important characteristics of money
Indicate whether the statement is true or false
Use the figure below to answer the next question. 
An increase in the economy's human capital would
A. shift the production possibilities frontier from CD to AB. B. move the economy away from point B and toward point A. C. shift the production possibilities frontier from AB to CD. D. move the economy away from point A and toward point B.