If the reserve ratio is 0.3 and a deposit of $1,000 is made to the bank, the bank can lend out $700

The aggregate demand curve shows that, if other factors are held constant, a

A) higher price level results in a decrease in the quantity of real GDP demanded. B) higher price level results in an increase in the quantity of real GDP demanded. C) higher price level results in a lower interest rate. D) lower price level results in a higher interest rate.

In Adam Smith's competitive market economy, the question of what goods to produce is determined by the:

a. "invisible hand" of public interest. b. "invisible hand" of government. c. "visible hand" of laws and regulations. d. "invisible hand" of the price system.