Questions from General Economics


Q: The two conflicting goals facing commercial banks are: a.

The two conflicting goals facing commercial banks are: a. Profit and liquidity. b. Profit and loss. c. Deposits and withdrawals. d. Assets and liabilities.

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Q: Suppose that the banking system in Canada has a required reserve ratio

Suppose that the banking system in Canada has a required reserve ratio of 10 percent while the banking system in the United States has a required reserve ratio of twenty percent. In which country woul...

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Q: Suppose that the Fed has set the reserve ratio at 10 percent

Suppose that the Fed has set the reserve ratio at 10 percent and that banks collectively have $2 billion in excess reserves. What is the maximum amount of new checkable-deposit money that can be creat...

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Q: Suppose that last year $30 billion in new loans were extended

Suppose that last year $30 billion in new loans were extended by banks while $50 billion in old loans were paid off by borrowers. What happened to the money supply? a. Increased. b. Decreased. c. Sta...

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Q: Which of the following will shift the aggregate demand curve to the

Which of the following will shift the aggregate demand curve to the left? a. The government reduces personal income taxes. b. Interest rates rise. c. The government raises corporate profit taxes. d....

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Q: In what direction will each of the following occurrences shift the consumption

In what direction will each of the following occurrences shift the consumption and saving schedules, other things equal? a. A large decrease in real estate values, including private homes. b. A sharp...

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Q: Label each of the following descriptions as being either an immediate-

Label each of the following descriptions as being either an immediate-short-run aggregate supply curve, a short-run aggregate supply curve, or a long-run aggregate supply curve. a. A vertical line. b...

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Q: Which of the following will shift the aggregate supply curve to the

Which of the following will shift the aggregate supply curve to the right? a. A new networking technology increases productivity all over the economy. b. The price of oil rises substantially. c. Busi...

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Q: At the current price level, producers supply $375 billion of

At the current price level, producers supply $375 billion of final goods and services while consumers purchase $355 billion of final goods and services. The price level is: a. Above equilibrium. b. A...

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Q: What effects would each of the following have on aggregate demand or

What effects would each of the following have on aggregate demand or aggregate supply, other things equal? In each case use a diagram to show the expected effects on the equilibrium price level and th...

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