Sugar and coffee are complements. When the price of coffee decreases, the demand for sugar
A) will fall.
B) remains constant.
C) will shift outward.
D) will shift inward.
Answer: C
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Everything else held constant, if the sum of the required reserve ratio and the excess reserve ratio is greater than one, an increase in the currency-deposit ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Which of the following criteria need NOT be satisfied for choosing a policy instrument?
A) The variable must be measurable. B) The variable must be controllable. C) The variable must be predictable. D) The variable must be transportable.
Monetary policy is:
a. controlled by the president, who appoints the members of the Board of Governors b. controlled by the president, who appoints the members of the Open Market Committee. c. insulated from politics since the term of only two members of the Board of Governors expires during the tenure of any modern president of the U.S. d. insulated from politics because the Federal Reserve Board is the bankers' bank. e. controlled by the department of finance of the United States.
Which of the following would lead to a rightward shift in the demand curve for golf balls?
a. An increase in the price of golf clubs b. A decrease in the popularity of golf c. An increase in the number of golfers d. A decrease in the price of golf balls e. An increase in the golf club membership fee