If the required reserve ratio (RRR) is 10 percent and the Fed sells a $5,000 bond to an individual who pays for it with a check, the money supply will
a. not change
b. decrease by $4,500
c. increase by $4,500
d. decrease by $5,000
e. increase by $5,000
D
Economics
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When a price support is set above the equilibrium price, producers ________ the quantity supplied and consumers ________ the quantity demanded
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) do not change; do not change
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The September 11 attacks had the effect of shifting the
A) IS curve to the right. B) IS curve to the left. C) LM curve to the right. D) LM curve to the left.
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