According to the classical approach, if planned savings increases,
a. the rate of interest will rise.
b. the rate of interest will fall.
c. planned investment will fall.
d. planned consumption will increase.
b. the rate of interest will fall.
Economics
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Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease the required-reserve ratio C) buy Treasury bills D) decrease income taxes
Economics
A central bank's international reserves consists of its holdings of
A) gold. B) silver and gold. C) foreign assets and gold. D) domestic assets and precious metals. E) foreign and domestic currency holdings.
Economics