In the Keynesian transmission mechanism, if the money market is in the liquidity trap, an increase in the money supply will
A) cause total expenditures and aggregate demand to increase.
B) cause total expenditures and aggregate demand to decrease.
C) have no impact on total expenditures and aggregate demand.
D) cause total expenditures to increase and aggregate demand to decrease.
E) cause total expenditures to decrease and aggregate demand to increase.
C
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__________ is the science or practice of managing money or other assets
a. Actuarial management b. Budgeting c. Accounting d. Financial management
A binding price floor creates
a. deadweight loss. b. consumer surplus. c. producer surplus. d. deadweight gain.
An increase in which of the following will shift the economy's productivity (GDP/L) curve?
a. the quantity of laborers b. technology c. capital d. output e. consumption
As interest rates fall, a firm would
A. be willing to pay more now to purchase the same number of future dollars. B. be willing to pay less now to purchase the same number of future dollars. C. have decreasing present value of expected earning. D. have higher expected costs of investment.