In the Keynesian model in the short run, an increase in the money supply will cause
A) an increase in output and a decrease in the real interest rate.
B) a decrease in the real interest rate but no change in output.
C) an increase in the real interest rate and an increase in output.
D) no change in either the real interest rate or output.
A
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As a result of the government procurement policy in the U.S.:
a. the domestic consumers are required to pay a higher price than the world price for the domestically produced goods. b. the government wields the sole authority of importing goods from abroad. c. the government wields the sole authority of exporting goods. d. the domestic producers can charge the government a higher price for their products than they charge consumers. e. the government is required to sponsor research and development for the domestic firms.
The fact that the United States has become a net debtor nation is an indication that
A. The U.S. economy is in a long-term decline compared to other major economies. B. The United States should never have abandoned the gold standard. C. The U.S. economy is highly regarded by world investors. D. As undesirable as they are, trade restrictions are becoming a necessity.
The long run in macroeconomics is a period in which wages and prices are flexible and there is full market adjustment.
a. true b. false