Macro UNIT 2 MILESTONE 2 Updated/Macro UNIT 2 MILESTONE 2 Updated

Document Content and Description Below

Question 1 In economic terms, which of the following happened when cupcakes went from being homemade treats to being specialized gourmet goodies with multiple TV shows devoted to them and people wait... ing in line for A change in the quantity of cupcakes demanded caused movement along the demand curve. As the price of cupcakes rose, so did demand. Changes in public tastes created a shift in the demand curve. Changing tastes created a shift in the supply curve. Question 2 Which of the following is NOT a step in the process of lending federal funds? At the end of the day, deposits and withdrawals influence the reserve level. The Fed gives short term loans to banks to help them meet reserve requirements. The FOMC sets a target for the federal funds rate. Banks with excess reserves loan money for one night to banks who cannot meet the reserve. Question 3 Select the statement that corresponds to a shift in the supply curve. A movement that occurs due to factors such as rms having more or less access to resources The amount of goods and services that may be purchased at a certain moment in time at a specific income level [Show More]

Last updated: 1 year ago

Preview 1 out of 7 pages