According to the interest-rate-based monetary policy transmission mechanism, a decrease in the money supply will
A. lead to an increase in investment spending and a decrease in real GDP which is greater than the increase in investment spending.
B. lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending.
C. lead to a decrease in investment spending and a decrease in real GDP which is greater than the decrease in investment spending.
D. lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending.
Answer: C
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Which of the following topics is a macroeconomic subject?
A) a proposed merger between two companies B) the level of sales at a particular department store C) increases in the overall price level of the United States D) the decision of an automobile manufacturer
Competing-interest legislation is characterized by
a. concentrated costs and concentrated benefits b. concentrated benefits and widespread costs c. widespread benefits and widespread costs d. widespread benefits and concentrated costs e. zero costs
If the economy is in recession and the number of used baby clothing stores increases, then:
a. used baby clothes are a necessity. b. used baby clothes are an inferior good. c. used baby clothes are a normal good. d. new baby clothes are a luxury. e. used baby clothes have price-elastic demand.
The law of diminishing marginal utility states that: a. total utility decreases as consumption of a good increases
b. total utility increases as consumption of a good increases. c. the increase in total utility from consuming an additional unit decreases as consumption increases. d. the increase in total utility from consuming an additional unit increases as consumption increases.