Output is determined in
A) the goods market and also influences money demand and the interest rate.
B) the money market and also influences money demand and the interest rate.
C) the goods market with no influence from the money market.
D) the money market with no influence on the goods market.
Ans: A) the goods market and also influences money demand and the interest rate.
You might also like to view...
If the price of automobiles were to decrease substantially, the demand curve for pizza would most likely
A) shift rightward. B) shift leftward. C) remain unchanged. D) remain unchanged while quantity demanded would change.
The members of the Federal Reserve Board of Governors are appointed by the Congress of the United States
Indicate whether the statement is true or false
In moving along a supply curve, which of the following is not held constant?
A. The number of firms producing this good. B. Expectations about the future price of the product. C. Techniques used in producing this product. D. The price of the product for which the supply curve is relevant.
How will the purchase of $100 million of government securities by the Federal Reserve change bank reserves and total checking account deposits in the banking system as a whole? Assume that banks do not hold any excess reserves, that households and firms
do not change the amount of currency they hold, and that the required reserve ratio is 20 percent. What will be an ideal response?