Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise.
b. Demand for real goods and services to rise and M2 money supply to rise.
c. Demand for real goods and services to rise and M2 money multiplier to remain the same.
d. Demand for real goods and services to remain the same and M2 money supply to rise.
.C
You might also like to view...
In 2009, Germany's capital account was -$135 million. This implies that
A) Germany invested more in other countries than those countries invested in Germany. B) Germany's currency must have appreciated during 2009. C) Germany imported more goods from its trading partners than it exported. D) Germany's official settlements account in 2009 must have been positive.
If C = 900 + 0.3Y, then autonomous expenditure is:
(a) 900. (b) 300. (c) 1200. (d) None of the above.
?Exhibit 10A-2 Macro AD-AS Model
In Exhibit 10A-2, the long-run aggregate supply curve represents:
A. ?potential real GDP output for this economy. B. that the economy is experiencing zero inflation. C. ?that the economy is experiencing a recessionary gap. D. ?the level of real GDP where the unemployment rate is zero.
A strikebreaker is
A) a temporary worker hired by a company to replace a union member who is striking. B) when the President imposes a cooling-off period. C) someone who engages in featherbedding. D) a secondary boycott.