Government regulations that worsen the performance of financial institutions include:
a. interest rate ceilings
b. reserving a minimum portion of loans for rural borrowers
c. a high percentage of deposits kept in reserve
d. subsidies for low-income borrowers
e. all of the above
E
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When the Fed raises the federal funds rate, eventually there is
A) an upward movement along the investment demand curve and the aggregate demand curve shifts leftward. B) an upward movement along the investment demand curve and the aggregate demand curve shifts rightward. C) a leftward shift of the investment demand curve and the aggregate demand curve shifts leftward. D) an upward movement along the investment demand curve and along the aggregate demand curve. E) a leftward shift of both the aggregate demand curve and the aggregate supply curve.
Explain the income and substitution effects of an increase in the price of one good on an individual's consumption choice
What will be an ideal response?