1national saving refers toa disposable income minus

Assignment Help Microeconomics

Reference no: EM13378014

1.National saving refers to:

A) disposable income minus consumption.

B) taxes minus government spending.

C) income minus consumption minus government spending.

D) income minus investment.

2.In a fractional-reserve banking system, banks create money when they:

A) accept deposits.

B) make loans.

C) hold reserves.

D) exchange currency for deposits.

3.The real interest rate is equal to the:

A) amount of interest that a lender actually receives when making a loan.

B) nominal interest rate plus the inflation rate.

C) nominal interest rate minus the inflation rate.

D) nominal interest rate.

4. In the classical model with fixed income, if the demand for goods and services is greater than the supply, the interest rate will:
A) increase.
B) decrease.

C) remain unchanged.
D) either increase or decrease, depending on whether consumption is greater or less than investment.

5. In the classical model with fixed income a decrease in the real interest rate could be the result of a(n):

A) increase in government spending.

B) increase in desired investment.

C) increase in taxes.

D) decrease in taxes.

6. Assets of banks include:

A) money market mutual funds.

B) currency in the hands of the public.

C) loans to customers.

D) demand deposits.

7. If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

A) $50 billion.

B) $100 billion.

C) $150 billion.

D) $600 billion.

8. If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the money supply equals:

A) $100 billion.

B) $150 billion.

C) $600 billion.

D) $650 billion.

9. The general demand function for real balances depends on the level of income and the:

A) real interest rate.

B) nominalinterestrate.

C) rate of inflation.

D) price level.

10. If the money supply is held constant, then an increase in the nominal interest rate will ______ the demand for money and ______ the price level.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

Reference no: EM13378014

Questions Cloud

1 under a strict command and control framework suppose : 1 under a strict command and control framework suppose abatement standards are set equally across polluters. assume the

Cross-hauling is the practice of trading the same commodity : cross-hauling is the practice of trading the same commodity in both directions between two countries. for example if

In a complex assembly operation it is found that the : in a complex assembly operation it is found that the learning curve rate is 70. the standard time of 3 minutes per

Assume thata the us is relatively capital abundantb india : assume thata. the u.s. is relatively capital abundant.b. india is relatively abundant in skilled labor.c. tractors

1national saving refers toa disposable income minus : 1.national saving refers toa disposable income minus consumption.b taxes minus government spending.c income minus

One hundred compressors of 200 hp rating are being : one hundred compressors of 200 h.p. rating are being considered for purchase by the state highway department. the

Spose demand and supply are given by qd 60 - p and qs : suppose demand and supply are given by qd 60 - p and qs p - 20.a. what are the equilibrium quantity and price in

1 if a firm purchases a part of its supplies on the open : 1. if a firm purchases a part of its supplies on the open market this is called a a spot market purchaseb a long term

Henry a resident of nevada sued adam a resident of utah in : henry a resident of nevada sued adam a resident of utah in the federal court of california. he sought 60000 damages

User Account

All Pages