To eliminate a recessionary gap, the Fed can:
a. increase the money supply as it will increase the interest rate and investment
b. increase the money supply as it will decrease the interest rate and increase investment.
c. decrease the money supply as it will increase the interest rate and investment.
d. decrease the money supply as it will decrease the interest rate and investment.
e. decrease the money supply as it will increase the interest rate and decrease investment.
b
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Money that has no intrinsic value and is created by a government decree is called
A) barter money. B) fiat money. C) commodity money. D) asset money.
A monopolist currently sells 18 units of a good. If marginal revenue on the last unit sold is $117, then the price of the good must be less than $117
Indicate whether the statement is true or false
When each stockholder incurs a tax liability on his or her share of the earnings of a corporation (whether or not the earnings are distributed), this is known as
A. being fully funded. B. full integration. C. full loss offset. D. fully imputed rent.
The more a firm invests in a new production technology, the lower its marginal costs. Which of the following scenarios involving this incumbent firm and a potential entrant makes the least economic sense?
a. The incumbent overinvests to deter entry when this investment is observable to the entrant. b. The incumbent overinvests to deter entry when this investment is unobservable to the entrant. c. The incumbent underinvests to accommodate entry when this investment is observable and they compete in prices. d. The incumbent overinvests to accommodate entry when this investment is observable and they compete in quantities.