# macroeconomics

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1
The most important reason for the slope of the aggregate demand curve is that as the price level _______.
1) increases, interest rates decrease, and investment increases
2) decreases, interest rates decrease, and investment decreases
3) increases, interest rates increase, and investment decreases
4) decreases, interest rates increase, and investment increases

2
When there is an adverse supply shock _______.
1) unemployment rises and the short-run Phillips curve shifts left
2) unemployment falls and the short-run Phillips curve shifts left
3) unemployment rises and the short-run Phillips curve shifts right
4) unemployment falls and the short-run Phillips curve shifts right

3
Suppose a bank has a 10 percent reserve requirement, \$4,000 in deposits, and has loaned out all it can given the reserve requirement.
1) It has \$400 in reserves and \$3,600 in loans.
2) It has \$40 in reserves and \$3,960 in loans.
3) It has \$800 in reserves and \$3,200 in loans.
4) It has \$444 in reserves and \$3,556 in loans.

4
Whitney puts money in a savings account at her bank earning 3.5%. One year later she takes her money out and notes that while her money was earning interest, prices rose 1.5%. Whitney earned a nominal interest rate of _______.
1) 3.5% and a real interest rate of 5%
2) 5% and a real interest rate of 2%
3) 5% and a real interest rate of 3.5%
4) 3.5% and a real interest rate of 2%

• macroeconomics -

Do a little research, then take a shot.
Hints 1) interest rates and investments move is opposite directions.
2)http://en.wikipedia.org/wiki/Phillips_curve
3) 10% of 4000 is 400.
4) Nominal interest rate is equal to the real rate plus inflation.

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