Expansionary monetary policy tends to:
A. reduce the interest rate and increase capital inflows.
B. increase both the interest rate and capital inflows.
C. increase the interest rate and reduce capital inflows.
D. reduce both the interest rate and capital inflows.
Answer: D
You might also like to view...
If the economy receives an influx of new workers from immigration,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
In the Keynesian model, everything else equal, a higher level of income
a. increases money demand and reduces the interest rate. b. increases money demand and increases the interest rate. c. increases savings and decreases the interest rate. d. increases investment and has no effect on the interest rate. e. both b and c.
Which of the following changes would not lead to a shift in Canada's production possibilities curve?
a. the introduction and use in Canada of more advanced technology b. a substantial emigration of Canadian workers to the U.S. c. a prolonged summer drought in Canada's Prairie Provinces that destroys 18% of Canada's wheat harvest d. a sharp increase in the number of Canadians earning advanced degrees in education, e.g., BA's, BS's, MD's and PhD's e. a change in the composition of Canada's output
If the economy's real GDP declines for at least one-half year, it's in a
a. depression b. recession c. downturn d. recovery e. limited prosperity