Money expansions are dependent on some key assumptions. Which of the following is not one of those assumptions?
a. banks let reserves sit idle
b. borrowers do something with the money the borrow
c. people do not choose to increase their cash holdings
d. all of the above are assumptions of money expansion
a
You might also like to view...
The aggregate demand curve
A) is like individual demand curves in that prices of other goods are held constant. B) is like individual demand curves in that income is constant. C) differs from individual demand curves in that the aggregate demand curve is not downward sloping. D) differs from individual demand curves in that the aggregate demand curve looks at the entire circular flow of income and product while the individual demand curve looks at only one good.
The spending multiplier tells us the:
A. amount by which GDP increases when spending increases by $1. B. amount by which GDP decreases when spending on capital goods increases by $1. C. fraction of each dollar that will decreases GDP of each dollar spent. D. amount by which spending increases when GDP increases by $1.
A short-run increase in capacity utilization
A. Shifts the production possibilities curve leftward. B. Shifts the production possibilities curve rightward. C. Moves the economy upward to the left along its existing production possibilities curve. D. Moves the economy to a point closer to its existing production possibilities curve.
Ceteris paribus, the price level will decrease if the aggregate
A. Supply curve shifts to the left. B. Supply and demand curves both shift to the right. C. Demand curve shifts to the left. D. Demand curve shifts to the right.