The demand for money rises. According to the Keynesian transmission mechanism, the interest rate __________, investment spending __________ (assuming it is interest-sensitive), the AD curve shifts to the __________ and if the AS curve is horizontal, Real GDP __________
A) rises; falls; left; rises
B) falls; rises; right; does not change
C) rises; falls; right; rises
D) falls; falls; left; does not change
E) rises; falls; left; falls
E
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Which of the following is TRUE of trends in the number of new U.S. patents?
A) There was a steady increase in new patents throughout the 1970s. B) The number of new patents granted each year has remained unchanged since the early 1970s. C) The number of new patents granted each year declined by more than 50 percent after 2001. D) There was a surge in new patents in the latter part of the 1990s.
Suppose that there is no government and no international trade. When C + I is less than the level of real GDP
A) unplanned inventories increase, and real GDP contracts. B) unplanned inventories decrease, and real GDP expands. C) real planned investment spending equals real planned saving. D) unplanned inventories equal zero, and there is no change in the level of real GDP.
An investor who is considering hedging by selling Treasury futures can also hedge by:
A) buying Treasury put options B) selling Treasury put options C) buying Treasury call options D) buying European Treasury options
As the central bank of the United States, the Fed does not have any liabilities on its balance sheet.
Answer the following statement true (T) or false (F)