In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, raising the federal funds interest rate,
everything else held constant. A) rise; decreases
B) rise; increases
C) decline; increases
D) decline; decreases
B
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The labels for the axes of an aggregate supply curve should be:
A. Real domestic output for the vertical axis and price level for the horizontal axis B. Real domestic output for the horizontal axis and price level for the vertical axis C. Real employment for the vertical axis and price level for the horizontal axis D. Aggregate demand for the vertical axis and real national output for the horizontal axis
The unemployment rate will decrease whenever there is a(n):
A. increase in the number of persons classified as unemployed. B. decrease in the number of unemployed relative to the size of the labor force. C. decrease in the size of the population and there is no change in the number of persons classified as employed. D. reduction in the size of the labor force.