When aggregate demand increases,
A) the price level is likely to rise as GDP rises.
B) the price level is likely to fall as GDP rises.
C) aggregate supply will shift to the right.
D) aggregate supply will shift to the left.
A
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The ________ interest rate is adjusted for expected changes in the price level
A) ex ante real B) ex post real C) ex post nominal D) ex ante nominal
A bank has excess reserves of $4,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be
A) -$5,000. B) -$1,000. C) $1,000. D) $5,000.
________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.
A. Positive; normative B. Fiscal; monetary C. Monetary; fiscal D. Normative; positive
Suppose the demand for good X is given by Qdx = 20 - 4Px + 2Py + M. The price of good X is $5, the price of good Y is $15, and income is $150. Given these prices and income, how much of good X will be purchased?
A. 220. B. 160. C. 180. D. None of the statements associated with this question are correct.