An increase in interest rates due to a decrease in the money supply will
A) reduce aggregate demand.
B) not change aggregate demand.
C) increase aggregate demand.
D) decrease aggregate supply in the short run and in the long run.
Ans: A) reduce aggregate demand.
Economics
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Deposits are examples of a bank's
A) liabilities. B) assets. C) net worth. D) balance sheet.
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At the profit-maximizing level of output for a perfectly competitive firm
A) average revenue equals average variable cost and price equals marginal cost. B) marginal revenue equals marginal cost and average total cost equals average fixed cost. C) price equals marginal cost. D) price equals average revenue and marginal cost equals average variable cost.
Economics