On the graph above, unplanned inventory investment is negative at point ________
A) A
B) B
C) G
D) H
E) none of the above
D
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Suppose the demand for hamburgers increases. In the short run, firms that produce hamburgers will experience a rise in prices, which will induce them to
A) increase production and decrease the number of workers. B) decrease production and increase the number of workers. C) decrease production and decrease the number of workers. D) increase production and increase the number of workers.
A bank has reserves of $50, deposits of $100, loans of $20, and government securities of $30. Assume the desired reserve ratio is 20 percent
a. What are the bank's assets and what are its liabilities? b. How much does the bank have in excess reserves? c. What can the bank do with its excess reserves that will affect the quantity of money?