The Federal Reserve Banks buy government securities from commercial banks. As a result, the checkable deposits:
A. of commercial banks are unchanged, but their reserves increase.
B. and reserves of commercial banks both decrease.
C. of commercial banks are unchanged, but their reserves decrease.
D. and reserves of commercial banks are both unchanged.
A. of commercial banks are unchanged, but their reserves increase.
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Which of the following is true of the aggregate demand curve?
a. The aggregate demand curve shows the various levels of expenditures in the economy at alternative price levels. b. The aggregate demand curve implies a positive relationship between inflation and unemployment. c. The aggregate demand curve is identical to the income consumption curve. d. The aggregate demand curve has the same slope as the aggregate supply curve. e. The aggregate demand curve relates relative prices to the quantity demanded of a particular good.
Which statement is true?
A. Until 1971, the U.S. ran a trade deficit virtually every year of the 20th century. B. The U.S. ran trade surpluses for most of the 19th century. C. In the 1920s, the U.S. flooded the rest of the world with consumer goods such as Model T Fords, radios and waffle irons as our trade surpluses increased. D. Until after WWII most of U.S. exports were agricultural products, such as cotton and grain sent to Europe.