The portion of ________ that a bank does not loan out or spend on securities is known as ________
A) deposits; reserves B) loans; reserves C) deposits; securities D) loans; securities
A
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In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold and interest rates move in the ____ direction as the change in the price level, while investment and the quantity RGDP demanded move in the ____ direction as the change in the price level
a. Same, same b. Same, opposite c. Opposite, same d. opposite, opposite
If the federal government announces a tax cut, which of the following is most likely in the short run?
a. A decrease in output, an increase in money demand, and an increase in the interest rate b. An increase in output, a decrease in money demand, and a decrease in the interest rate c. A decrease in output, a decrease in money demand, and a decrease in the interest rate d. An increase in output, an increase in money demand, and a decrease in the interest rate e. An increase in output, an increase in money demand, and an increase in the interest rate.