In the Keynesian model, which of the following will cause a reduction in interest rates?
A) An increase in money demand
B) An increase in money supply
C) An increase in saving
D) A decline in saving
B
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
If depreciation is equal to investment ________
A) capital per-worker rises over time B) capital per-worker is stable C) capital per-worker falls over time D) capital per worker equals saving
What are the earnings of a resource with a perfectly elastic supply curve called?
a. Transfer earnings b. Dividends c. Economic rent d. Capital gain e. Interest
What makes production planning a daunting task for central planners?
What will be an ideal response?