Inflation can be thought of as:
A. an increase in the price of money.
B. a decrease in the price of money.
C. no change in the price of money, just in the demand for money.
D. no change in the price of money, just in the supply of money.
Answer: B
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(Consider This) During and immediately following the severe recession of 2007-2009, on the consolidated balance sheet of the 12 Federal Reserve Banks:
A. commercial bank reserves grew significantly because the Fed increased the required reserve ratio. B. liabilities fell significantly as commercial banks drained reserve accounts to meet their own deposit liabilities. C. assets fell significantly as a result of heavy withdrawals from commercial banks. D. assets grew significantly from Fed purchases of securities from financial institutions.
In a competitive resource market, a decrease in the demand for a productive resource, ceteris paribus, will cause all of the following except a(n):
A. Decrease in the price of the resource B. Increase in the price of the resource C. Decrease in the total income earned by all units of the resource D. Decrease in the number of units of the resource that are employed