In the above figure, a movement from point B to point C could be explained by
A) an increase in the price level.
B) a decrease in the quantity of money in circulation.
C) increased government spending.
D) the real-balance effect.
C
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The national debt can only be reduced if
A) the federal budget is in deficit. B) the federal budget is in surplus. C) there are no tax multiplier effects. D) the economy has a deflationary ga
Refer to Scenario 13.1. At your negotiated price the producer surplus is:
A) $0. B) $50. C) $200. D) $250. E) $300.
If reserve demand is volatile, in order for the central bank to keep interest rates from being volatile, it must:
A. set targets for both interest rates and the quantity of reserves. B. target the quantity of reserves. C. let the quantity of reserves fluctuate. D. not target the interest rates.
Foreign direct investment that takes the form of purchasing an existing plant is often called:
a. acquisition FDI. b. greenfield FDI. c. requisition FDI. d. brownstone FDI.