An increase in the money supply shifts the LM curve to the right, causing the interest rate to ________ and output to ________, everything else held constant
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
C
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In the early 2000s, lenders began issuing mortgage loans to people who would normally not be qualified to take out loans because they did not meet lending standards. Those borrowers are known as
A) alternative borrowers. B) weak borrowers. C) subprime borrowers. D) credit risks.
A signal works best if
a. it is acquired with equal ease by all workers b. it is not acquired with equal ease by all workers c. it is not understood by the employer d. it is not understood by the employee e. wages are allowed to vary
Deregulation has led to higher prices
a. True b. False Indicate whether the statement is true or false
When a car importer in the UK buys cars from Toyota made in Japan she pays with
A. gold. B. dollars. C. pounds. D. yen.