An unanticipated increase in the money supply will lead to
a. a decline in interest rates, an increase in investment, and an increase in aggregate demand.
b. a decline in interest rates, a decrease in investment, and an increase in aggregate demand.
c. a decline in interest rates, an increase in investment, and a decline in aggregate demand.
d. an increase in interest rates, an increase in investment, and an increase in aggregate demand.
e. a decline in interest rates, a decline in investment, and a decline in aggregate demand.
A
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An increase in aggregate demand will shift the short-run Phillips curve to the right.
Answer the following statement true (T) or false (F)
Assume that between 1999 and 2009 nominal GDP increased from $7 trillion to $12 trillion and that the GDP deflator rose from 100 to 150 . Which of the following expresses GDP for 2009 in terms of 1999 prices?
a. $7.5 trillion b. $8.0 trillion c. $9.0 trillion d. $18.0 trillion
Refer to the diagram. Starting at point E, the production of successive units of bread will cost:
A. a constant 8 units of tractors.
B. a constant 6 units of tractors.
C. 1 / 8 , 1 / 6 , 1 / 4 , and 1 / 2 units of tractors.
D. 1 / 2 , 1 / 4 , 1 / 6 , and 1 / 8 units of tractors.
Refer to the information provided in Table 22.1 below to answer the question(s) that follow. Table 22.1PersonWeight (lbs)Abe160Boris210Calvin300Darius185Eddie240Franklin175A study to determine the effect that the weight of an average 6 ft. tall man has on the incidence of Type 2 diabetes was conducted in a small town. The six participants and their corresponding weights are listed in the table.Related to the Economics in Practice on p. 728: Refer to Table 22.1. When using regression discontinuity, if this study had a threshold of 180 pounds, the outcomes of which individuals would be compared?
A. Boris, Calvin, Darius, and Eddie B. all six individuals C. Abe and Franklin D. Franklin and Darius