How Monetary Policy affects the Economy?
The Keynesian model says that monetary policy affects the economy (prices, output, employment) via changes in the interest rate.
When the interest rate lowers (monetary policy expands the money supply), business investment (I) expands, which also expands aggregate demand. Depending on where on the aggregate supply the economy is, the price level, GDP and employment will increase.
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There are two major Internet service providers in Eduland. One company has a market share of 60% and the other firm has a market share of 40%. The Herfindahl-Hirschman Index for this industry is ________
A) 100,000 B) 1,200 C) 5,200 D) 100
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts increases from $15 to $20
A) the marginal cost of producing the third polo shirt will increase to $20. B) there will be a surplus of polo shirts. C) producer surplus will rise from $13 to $28. D) consumers will buy no polo shirts.
Albro Martin and the text contend that the work of the Interstate Commerce Commission was largely for the benefit of _________
a. consumers b. the environment c. the federal government d. major shippers
A tax multiplier equal to ?4.30 would imply that a $100 tax increase would lead to a:
a. $430 decline in real GDP. b. $430 increase in real GDP. c. 4.3 percent increase in real GDP. d. 4.3 percent decrease in real GDP. e. 43 percent decrease in real GDP.