Within the Keynesian cross, the adjustment towards equilibrium occurs through:
A) inflation.
B) inventories.
C) interest rates.
D) none of the above.
B
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Everything else remaining unchanged, if the demand curve for reserves shifts to the left and borrowed reserves is zero:
A) there will be a decrease in both the federal funds rate and the quantity of reserves. B) there will be a decrease in the federal funds rate but no change in the quantity of reserves. C) there will be an increase in the federal funds rate but no change in the quantity of reserves. D) there will be an increase in both the federal funds rate and the quantity of reserves.
Which of the following is NOT an important factor affecting growth in labor productivity?
A) the saving rate B) the speed with which prices fall C) the growth rate of physical capital D) the growth rate of labor productivity