Which of the following will increase interest rates in the short run?
A. An decrease in reserve requirements
B. Open-market sales by the Fed
C. A decrease in real GDP
D. A decrease in the price level
Answer: B
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The total amount of copper in the earth is not increasing. Does this mean that in the market for copper, the supply curve is perfectly inelastic? Explain
What will be an ideal response?
Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?
A) Consumers pay all of the excise tax. B) Producers pay all of the excise tax. C) Consumers and producers share the excise tax equally. D) Neither consumers nor producers pay the excise tax.
Small denomination time deposits are included in
A. M1 only. B. M2 only C. M1 and M2. D. M2 and M3. E. M1, M2, and M3.
Which of the following will NOT cause the IS curve to shift to the left?
A. A contractionary fiscal policy B. An exogenous decrease in household consumption C. An exogenous decrease in exports D. An exogenous decrease in imports