When the money supply decreases, other things being equal,
a. real interest rates fall and investment spending rises.
b. real interest rates fall and investment spending falls.
c. real interest rates rise and investment spending falls.
d. real interest rates rise and investment spending rises.
c
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Which of the following hypotheses is a plausible explanation for why U.S. households save so little?
A. Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor. B. Most American already own homes and, therefore, have less need for life-cycle saving. C. The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans. D. Government assistance to the elderly has reduced the need for life-cycling saving.
What is the main shortcoming of the Big Mac Index?
What will be an ideal response?
The figure above shows the market for tires. According to the figure, the price elasticity of demand is ________ the price elasticity of supply
A) greater than B) equal to C) less than D) not comparable to E) More information is needed to determine if the price elasticity of demand is greater than, equal to, less than, or comparable to the price elasticity of supply.
A market structure in which only one firm survives because of economies of scale: a. is called a structural monopoly
b. is called a patented monopoly. c. is called a natural monopoly. d. is called a government monopoly.