When interest rates decrease, banks will normally
a. increase lending, but decrease deposits and the money supply.
b. increase lending, deposits, and the money supply.
c. decrease lending, but increase deposits and the money supply.
d. decrease lending, deposits, and the money supply.
d
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Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 5,000 units?
A. $0.63 B. $62.50 C. $625 D. $6,250
Corn is used to produce tortillas. If the price of corn increases:
A. the demand for tortillas increases. B. the demand for tortillas decreases. C. the supply of tortillas increases. D. the supply of tortillas decreases.
Of the collection of supply and demand diagrams in Figure 2.2, which one(s) show the result of an increase in the expected future price?
A. Figure 1 B. Figure 4 C. Figures 2 and 3 D. Figures 1 and 4
What is the problem with protecting industries in the United States from the dumping of foreign products on the domestic market?
What will be an ideal response?