"As interest rates rise, people save more money." A graph displaying this relationship would show
A) an inverse relationship.
B) a positive relationship.
C) a cross-section graph.
D) a positive then a negative relationship.
B
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As a result of pure free trade in a commodity, the
A. price of the commodity must be the same in all countries. B. total quantity imported will exceed the total quantity exported. C. price of the commodity will be higher in the producing country. D. price of the commodity will be lower in the producing country.
If the Central Bank of Macroland puts an additional 1,000 dollars of currency into the economy, the public deposits all currency into the banking system, and banks have a desired reserve/deposit ratio of 0.10, then the banks will eventually make new loans totaling ________ and the money supply will increase by ________.
A. $9,000; $9,000 B. $9,000; $10,000 C. $1,000; $1,000 D. $1,000; $9,000