Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point E to Point B, there has been
A. a decrease in supply and an increase in demand.
B. a decrease in supply and an increase in quantity demanded.
C. an increase in supply and an increase in quantity demanded.
D. an increase in both supply and demand.
Answer: C
Economics
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Which of the following would tend to increase AD?
a. a commercial bank using excess reserves to extend a loan to a customer b. a commercial bank purchasing U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate
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Which of the following is an example of a fiscal policy initiative?
a. Lowering of interest rates. b. Increase in reserve requirements. c. Reduction in taxes. d. Decrease in money supply.
Economics