According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will
A) lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending.
B) lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending.
C) lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending.
D) lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending.
A
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In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen
A) rightward; complement B) leftward; substitute C) leftward; complement D) rightward; substitute
When the price of a normal good falls, then:
a. both the income and substitution effects combine to cause the quantity demanded to increase. b. the substitution effect will cause people to buy more because the good is relatively less expensive. c. the income effect will cause people to buy more because of the increased purchasing power associated with the lower price. d. all of these.
If a good is produced but not consumed, then:
a. It is not included in GDP or GNP. b. It is not included in GDP, but it is included in GNP. c. It is not included in GNP, but it is included in GDP. d. It enters into gross private domestic investment, which is a part of GDP and GNP. e. It enters into "passive consumption," which is a part of GDP in the following period.
In a bilateral monopoly, the wage rate that is determined in the market
A) is equal to MFC. B) is equal to MRP. C) is indeterminate. D) is the same as in a perfectly competitive market.