The money-creating ability of the banking system may be lowered by:
a. a decrease in the cash balances that people wish to hold.
b. a fall in the overall rate of inflation.
c. an increase in the excess reserves.
d. an increase in total deposits.
e. an increase in the reserve requirement.
e
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It is possible to completely eliminate scarcity
a. True b. False Indicate whether the statement is true or false
What happens to the aggregate demand curve when the Fed reduces the money supply?
a. It shifts leftward, lowering real GDP and the price level. b. It shifts leftward, raising real GDP and the price level. c. It shifts leftward, lowering real GDP but raising the price level. d. It shifts rightward, raising real GDP and the price level. e. It shifts rightward, lowering real GDP but raising the price level.
Which of the following is true of the relationship between income inequality and public policy in the U.S. since the 1980s?
A. Public policy has been more favorable to those at the high end of the income distribution resulting in an increase in income inequalities. B. Public policy has been less favorable to those at the high end of the income distribution resulting in a decrease in income inequalities. C. Public policy has been more favorable to those at the low end of the income distribution resulting in an increase in income inequalities. D. Public policy has been less favorable to those at the low end of the income distribution resulting in a decrease in income inequalities.
Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this
A) Mary has comparative advantages in activities. B) Tom has comparative advantages in both activities. C) Tom has a comparative advantage in cleaning windows. D) Mary has a comparative advantage in cleaning windows.