From 2007 to 2008, the Federal Reserve System reduced interest rates, the price that borrowers pay. As a result, economists expected demand for money to

a. increase.
b. decrease.
c. not change.
d. be influenced by the interest rate, but with an uncertain effect.


c

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap.  

A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary

Economics

For China

A) there was a long period of success with the economic results of communism so it was hard to change policies. B) reform of its economic system was rapid, with a quick dismantling of most of the controls exercised by the state and party over the economic system, but not the political system. C) economic reforms were intended to create more wealth to distribute, not do undo the communist party. D) there are no longer state owned enterprises.

Economics

Everything else held constant, when the current value of the domestic currency increases, the ________ domestic assets ________

A) demand for; increases B) quantity demanded of; increases C) demand for; decreases D) quantity demanded of; decreases

Economics

Using Figure 1 below, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:


A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y3.
D. P2 and Y2.

Economics