Which of the following is a monetary policy intended to rein in inflation?
A. Raising the interest rates to increase investment spending
B. Decreasing the money supply to shift the aggregate demand curve leftward
C. Reducing interest rates to increase investment spending
D. Increasing the money supply to shift the aggregate demand curve rightward
Answer: B
You might also like to view...
Over half of government spending is discretionary spending
Indicate whether the statement is true or false
An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
A tax cut will unambiguously lower income-tax revenue
Indicate whether the statement is true or false
Which of the following is true of net taxes?
What will be an ideal response?