An invention that speeds up the Internet is an example of
A) an income effect.
B) an increase in labor.
C) a substitution effect.
D) a supply shock.
D
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
During World War II
A) the Board of Governors was temporarily disbanded. B) the Fed was not allowed to make discount loans. C) the Fed agreed to hold interest rates on short-term Treasury securities at low levels. D) the Fed agreed not to buy Treasury securities.
When the United States was under the gold standard,
a. the amount of currency depended on the size of the monetary gold stock. b. the central bank would buy or sell gold from anybody at the established price. c. the value of the dollar floated against gold. d. the amount of currency depended on the size of the monetary gold stock AND the central bank would buy or sell gold from anybody at the established price.
Assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to ________, which will ___________ investment spending
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease