When the Fed buys bonds
a. the supply of money increases and so aggregate demand shifts right.
b. the supply of money decreases and so aggregate demand shifts left.
c. the supply of money decreases and so aggregate demand shifts right.
d. the supply of money increases and so aggregate demand shifts left.
a
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Vouchers allow students to
A. get free lunches at public schools. B. go to public schools at reduced rates. C. receive discounts on school supplies like pens and paper. D. all of these. E. none of these answer options are correct.
An example of a good that is not rival in consumption is:
A. bottled water. B. electricity. C. a sports car. D. a paper clip.
The equation of exchange states that
A) saving equals investment. B) gross domestic product equals the money supply multiplied by its velocity. C) increases in money supply cause decreases in velocity. D) increases in money supply cause increases in velocity.
An increase in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium.
A. remain unchanged; fall B. rise; rise C. fall; fall D. remain unchanged; rise