Which of the following would tend to increase AD?
a. a commercial bank using excess reserves to extend a loan to a customer
b. a commercial bank purchasing U.S. securities from the Fed as an investment
c. an increase in reserve requirements
d. an increase in the discount rate
a
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Large denomination time deposits are included in:
A) M1. B) M2. C) M3. D) L.
The investment component of GDP measures spending on
a. financial assets such as stocks and bonds. During recessions it declines by a relatively large amount. b. residential construction, business equipment, business structures, and changes in inventory. During recessions it declines by a relatively large amount. c. financial assets such as stocks and bonds. During recessions it declines by a relatively small amount. d. residential construction, business equipment, business structures, and changes in inventory. During recessions it declines by a relatively small amount.