Trace through the Keynesian cause-and-effect sequence. A decrease in the money supply will cause the interest rate to
a. fall, boosting investment and shifting the AD curve to the right, leading to an increase in real GDP
b. fall, boosting investment and shifting the AD curve to the right, leading to a decrease in real GDP
c. rise, cutting investment and shifting the AD curve to the right, leading to an increase in real GDP
d. rise, boosting investment and shifting the AD curve to the right, leading to an increase in real GDP
e. rise, cutting investment and shifting the AD curve to the left, leading to a decrease in real GDP
E
You might also like to view...
Lump sum grants are sometimes referred to as categorical grants.
A. True B. False C. Uncertain
If the price of automobiles were to increase substantially, the demand curve for automobiles would most likely
A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper.
Programs to equalize individual income would most harm ______.
a. medium-income single people b. low-income large families c. medium-income married couples d. high-income single people
Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect.
Assuming equilibrium price P1, producer surplus is represented by areas
A. a + b. B. a + c. C. a + b + c + d. D. c + d.