When there is a change in demand,
a. there is a rightward movement along the demand curve
b. there is a leftward movement along the demand curve
c. there is a shift of the supply curve
d. changes in price lead to different changes in quantity demanded
e. there is a shift of the demand curve
E
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An increase in the reserve requirement
A) increases the money supply, which leads to increased interest rates and a decrease in GDP. B) decreases the money supply, which leads to increased interest rates and a decrease in GDP. C) decreases the money supply, which leads to decreased interest rates and a decrease in GDP. D) increases the money supply, which leads to decreased interest rates and a decrease in GDP.
What policies would you recommend to the U.S. government to lower the balance of trade deficit and decrease net capital inflows?
What will be an ideal response?