The interest rate is determined in the
A) money market and has no influence on the goods market.
B) money market and influences the level of planned investment and thus the goods market.
C) goods market and has no influence on the money market.
D) goods market and influences the level of planned investment and thus the money
market.
Answer: B) money market and influences the level of planned investment and thus the goods market.
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Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital
A) more; more B) more; less C) the same; the same D) less; more E) less; less
The Fed's narrowest measure of money is ________
A) M1 B) M2 C) M3 D) all of the above E) none of the above
The decision to expand the size of your factory is a long-run decision
Indicate whether the statement is true or false
The recession of the early 1990s, which followed a period of sustained prosperity, can best be explained as resulting from
a. cost-push inflation b. a decrease in aggregate demand c. a decrease in aggregate supply d. stagflation e. too many speculative real estate deals