In the 1960s, banks started issuing negotiable CDs in order to
A) offer higher interest rates than they were allowed to on deposits.
B) lower information costs.
C) appeal more to the small borrower.
D) lend in the direct finance market.
A
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The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase. B) The demand for ferry service would decrease. C) There would be an upward movement along the demand curve for transits through the Chunnel. D) There would be a downward movement along the demand curve for transits through the Chunnel.
A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future income will fall causes aggregate
a. demand to shift outward b. demand to shift inward c. supply to shift outward d. supply to shift inward e. supply and aggregate demand to shift inward