A general rule of thumb is that if, after a period of increases, the leading indicator index sustains ________ consecutive declines, a recession (or at least a slowing of the economy) will follow

The reserves supply schedule has a positive slope because

a. the Fed lowers the discount rate as interest rates rise. b. the Fed makes more money available at higher interest rates. c. as interest rates rise, banks will find loans more profitable. d. as interest rates rise, people will demand more loans.

The demand for reserves increases as the price level rises because

A. people want money to buy goods that will appreciate with inflation. B. people need more money to finance transactions. C. the opportunity cost of holding money increases. D. higher prices reduce the value of dollar assets.