Describe what happens to nominal and real interest rates, investment and aggregate demand when money supply shifts right or left, other things equal. When money demand shifts right or left
Whenever nominal interest rates increase in the money market, for given inflationary expectations, it will also increase real interest rates and decrease investment and aggregate demand. That would happen with either a decrease in the money supply curve or an increase in the money demand curve.
Whenever nominal interest rates decrease in the money market, for given inflationary expectations, it will also decrease real interest rates and increase investment and aggregate demand. That would happen with either an increase in the money supply curve or a decrease in the money demand curve.
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Which of the following statements about quotas is correct?
a. They benefit domestic consumers through lower prices. b. They benefit domestic producers through higher prices. c. They raise world output. d. They cause outward shifts in the domestic and foreign production possibilities frontiers. e. They benefit domestic producers through increased competition that stimulates innovation.
Which of the following is false?
a. The national debt increases in size whenever the federal government has a surplus budget. b. All of the answers are false. c. The national debt's size decreased steadily after World War II. d. The size of the national debt currently is about the same size as it was during World War II.
Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000What is the value of Taylor's liabilities?
A. $308,000 B. $311,000 C. $300,000 D. $303,000
If the price of a good is expected to fall in the future, its
A. demand curve will shift to the right. B. supply curve will shift to the right. C. demand curve will shift to the left. D. b) and c).