Which of the following will both make people buy less?

a) wealth falls and interest rates fall
b) wealth and interest rates rise
c) wealth falls and interest rates rise
d) wealth rises and interest rates fall

Ans: c) wealth falls and interest rates rise

Economics

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Suppose the lack of agricultural land is a key reason for the slow economic growth of Lithasia. This argument claims that:

A) geography is the fundamental cause of slow economic growth in Lithasia. B) stock of physical capital is a fundamental cause of slow economic growth in Lithasia. C) stock of human capital is a proximate cause for slow economic growth in Lithasia. D) geography is a proximate cause of slow economic growth in Lithasia.

Economics

If there is a change in the federal funds rate from a target rate due to a decrease in the demand for reserves, the Fed can maintain the target by:

A) causing an upward movement along the supply of reserves curve. B) causing the supply curve of reserves to shift to the left. C) causing a downward movement along the supply of reserves curve. D) causing the supply curve of reserves to shift to the right.

Economics