In which case can we be sure aggregate demand shifts left overall?
a. people want to save more for retirement and the Fed increases the money supply.
b. people want to save more for retirement and the Fed decreases the money supply.
c. people want to save less for retirement and the Fed increases the money supply.
d. people want to save less for retirement and the Fed decreases the money supply.
b
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Which one of the following resources is not underemployed?
A. The use of Manhattan Island in New York City for growing corn. B. The use of farmland in the Iowa and Illinois corn belt for buildings to do stock market research. C. An automobile factory that is shut down for two months to be retooled for a model change. D. Limiting all men to the fields of school teaching and social work.
The AD curve is the relationship between
A) aggregate planned expenditure and the price level. B) aggregate planned expenditure and real GDP when the price level is fixed. C) the quantity of real GDP demanded and the unemployment rate. D) aggregate planned expenditure and the quantity of real GDP demanded. E) the quantity of real GDP demanded and the quantity of real GDP supplied. The above figure shows a nation's consumption function.
Which primary trade partner of India suffered setbacks that ultimately helped lead India to embark on economic reform?
A) The United Kingdom B) The United States C) The Soviet Union D) South Korea
If an increase in the level of money supply leads to a proportionate increase in prices with no effect on real variables ,we say that
A) the Fisher relationship holds. B) money is neutral. C) money is superneutral. D) money is a medium of exchange.