Crowding out occurs when
A) investment increases as government spending falls.
B) investment increases when government spending rises.
C) investment decreases when government spending falls.
D) investment decreases when government spending rises.
D
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For a given level of reserves, an increase in the reserve requirement ratio will
A) decrease legal reserves and decrease the money supply. B) increase legal reserves and decrease excess reserves. C) increase legal reserves and increase excess reserves. D) increase excess reserves and increase the money supply.
Which of the following is likely to occur as the result of the law of diminishing marginal utility?
A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar. C) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant. D) Hudson enjoyed his second slice of pizza more than his first.