An increase in the money supply, all else held constant, usually ________.
A. increases the interest rate and increases aggregate demand
B. decreases the interest rate and increases aggregate demand
C. increases the interest rate and decreases aggregate demand
D. decreases the interest rate and decreases aggregate demand
Answer: B. decreases the interest rate and increases aggregate demand
You might also like to view...
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.
a. true b. false
A quota is
A) a government-imposed restriction on the quantity of a specific good that can be imported into a country. B) a tariff imposed on goods that are dumped into the home country. C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries. D) a tariff based on the value of the imported good.
The Five Forces Model determines whether an industry is an oligopoly.
Answer the following statement true (T) or false (F)