The interest-rate-based monetary policy transmission mechanism emphasizes the
A) indirect effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate.
B) direct effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
C) direct effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate.
D) indirect effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
A
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Refer to the above table. What does total product equal when 4 units of labor are used?
A) 1328 B) 332 C) 320 D) 960.
In the long run in monopolistic competition,
a. economic profits are zero. b. P = MC. c. P = minimum ATC. d. firms have an incentive to leave. e. the demand curve is tangent to the MC curve.
If the tax revenue of the federal government is less than its spending, then the federal government necessarily
a. runs a budget deficit. b. runs a budget surplus. c. runs a national debt. d. will increase taxes.
Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to:
A. reduce the demand for tacos and increase the demand for soda. B. reduce the demand for soda and increase the demand for tacos. C. increase the demand for both soda and tacos. D. reduce the demand for both soda and tacos.