If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
(A) No change in the money supply.
(B) An increase, then a decrease, in the money supply.
(C) An increase in the money supply.
(D) A decrease in the money supply.
Ans: (D) A decrease in the money supply.
Economics
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An increase in real GDP leads to
A) a movement upward along the demand for money curve but no shift of the curve. B) a movement downward along the demand for money curve but no shift of the curve. C) neither a shift in the demand for money curve nor a movement along the curve. D) a leftward shift in the demand for money curve. E) a rightward shift in the demand for money curve.
Economics
Differentiate between the income effect and the substitution effect of a fall in the price of a good
What will be an ideal response?
Economics