An increase in the money supply:

a. lowers the interest rate, causing a decrease in investment and an increase in GDP.
b. lowers the interest rate, causing an increase in investment and a decrease in GDP.
c. lowers the interest rate, causing an increase in investment and an increase in GDP.
d. raises the interest rate, causing an increase in investment and an increase in GDP.
e. raises the interest rate, causing a decrease in investment and a decrease in GDP.


c

Economics

You might also like to view...

The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook

A) increased by 25 percent. B) increased from 2.4 to 3. C) decreased from 2.4 to 2.0. D) decreased from 1.4 to 1.25

Economics

Find the dollar value of a per unit gasoline tax that would achieve the efficient solution, and calculate the resulting tax revenues generated to government.

As an economic consultant to the federal government, you recommend a market-based national policy response to global warming. In particular, you suggest using a pollution charge, which can be implemented as a gasoline tax. Based on your estimates, the marginal benefits and costs per gallon of gasoline are modeled as follows: MPB = 10 ? 0.7Q MEB = ? 0.05Q MSC = MPC = 1 + 0.15Q, where Q is in millions of gallons.

Economics

Which situation below would represent a surplus in the fertilizer market?

A. quantity demanded is 1.2 million; quantity supplied is 1.1 million. B. market price $2.00 per bag; equilibrium price $2.25 per bag. C. market price $2.50 per bag; equilibrium price $2.00. D. quantity supplied this year is 25% greater than quantity supplied last year.

Economics

A customs broker or other import consultant can help an importer minimize import duties by ________.

A) bypassing duty rebates available through drawback provisions B) incurring duties by using non-bonded warehouses and foreign trade zones C) maximizing liability by improperly marking an import's country of origin D) valuing products in such a way that they qualify for more favorable duty treatment

Economics