Using the Keynesian model, the effect of a government-imposed ceiling on interest rates paid on personal checking accounts that is lower than the current market interest rate would be to cause ________ in the real interest rate and ________ in output
in the short run. A) a decrease; a decrease
B) a decrease; no change
C) a decrease; an increase
D) an increase; a decrease
C
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An unanticipated decline in investment demand within the new classical model will cause
a. the price level to fall with no effect on output. b. output to fall with no effect on the price level. c. both the price level and output to fall. d. no change in either the level of price or output.
When you see a commercial on TV asking you to "look for the union label," the union is trying to
A) increase worker productivity. B) increase the demand for nonunion goods. C) increase the demand for union goods. D) decrease the demand for nonunion goods.
Comparing marginal revenue to marginal cost (i) reveals the contribution of the last unit of production to total profit. (ii) is helpful in making profit-maximizing production decisions. (iii) tells a firm whether its fixed costs are too high
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i) and (iii) only
What has been the relationship over the past century between the U.S. economy's income and the percentage of that income that the government collects in revenues?