A higher interest rate makes _____ more attractive. Therefore the quantity of loanable funds supplied increases
Fill in the blank(s) with correct word
saving
You might also like to view...
Other things constant, the quantity theory of money concludes that any increase in the quantity of money
A) decreases the demand for money. B) decreases in the aggregate price level. C) decreases the aggregate level of nominal income. D) proportionally increases the price level.
A self-correcting mechanism tending to bring a country's balance of payments into equilibrium exists under __________ exchange rate systems
A) fixed and floating B) floating, but not fixed C) fixed, but not floating D) neither fixed nor floating
The full employment level of real GDP can be represented on an aggregate supply and demand diagram as a(n):
a. vertical line. b. upward-sloping line. c. horizontal line. d. downward-sloping line.
Keynesian economics
a. affirms the classical economists' basic premise concerning competitive markets b. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downward c. emphasizes that an economy can never be in equilibrium at less than full employment d. prefers to emphasize aggregate supply over aggregate demand e. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP