If the Federal Reserve's goal is to stabilize aggregate demand, then in response to an increase in money demand, the Federal Reserve will _____ the money supply
Fill in the blank(s) with correct word
increase
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The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment
A) surplus; raises; decreases B) surplus; lowers; decreases C) deficit; lowers; decreases D) deficit; lowers; increases E) deficit; raises; decreases
Which of the following would be classified as a personal consumption expenditure?
a. All of the following. b. Your purchase of a newly constructed house c. Your purchase of a preowned house. d. Your purchase of one share of Microsoft stock. e. Your purchase of this economics course.
Which of the following is FALSE?
A) The analysis of agriculture, textiles, and clothing in the EU, the United States, and Japan supports the proposition that older sectors of the economy are most protected, particularly in cases where the nation has lost a substantial part of its comparative advantage. B) Even when tariffs are relatively low, the cost per job saved tends to be high. C) Commercial policy is grossly inefficient at achieving the objective of job preservation. D) Trade barriers in high-income countries do not cause unintended consequences in low-income countries because most of their trade is with other industrialized countries.
Economic rent is any payment
A) received by the owner of a resource in perfectly elastic supply. B) received by the owner of a resource with a supply curve that is not horizontal. C) in excess of the resource's opportunity cost. D) below that of a normal profit or return.