The preferred asset ratio "U/D" affects the M2 money multiplier because:
a. Actually, it is does not affect the M2 money multiplier because customary reserves are not a part of M2.
b. Funds kept in customary reserves reduce financial institution's ability to lend.
c. U/D affects the required reserves financial institutions must hold and thereby affects the banking system's lending ability.
d. U/D determines the funds flowing into near-money accounts.
e. None of the above.
.B
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Smallville has experienced a fall in its birth rate over time. This will cause: a. the long-run aggregate supply curve to shift rightward
b. the long-run aggregate supply curve to shift leftward. c. an upward movement along the long-run aggregate supply curve. d. a downward movement along the long-run aggregate supply curve.
Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run
a. True b. False Indicate whether the statement is true or false
After graduating from high school, Balin plans to go to college. The college tuition is $15,000 a year. But, instead of going to college, Balin could take a full-time job paying $20,000. If Balin decides to go to college, what is his opportunity cost for attending for one year?
A. $35,000 B. $5,000 C. $15,000 D. $20,000
If price rises, what happens to quantity supplied of a product?
a. It increases. b. It decreases. c. It does not change. d. Quantity supplied is constant, but supply increases.