When the Fed decreases the money supply, we expect
a. interest rates and stock prices to rise.
b. interest rates and stock prices to fall.
c. interest rates to rise and stock prices to fall.
d. interest rates to fall and stock prices to rise.
c
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Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate
a. money. b. currency. c. bank creation of check able deposits. d. bank reserves.
The most common type of tariff is the ________ tariff.
A) export B) import C) transit D) ad valorem
Members of the EU (European Union):
A) have virtually eliminated all trade barriers within the community. B) have increased trade restrictions among them. C) have made it more difficult to trade with each other. D) no longer trade with North America.
Which of the following changes will shift the consumption function upward?
A. a decrease in wealth B. an increase in real disposable income C. a decrease real disposable income D. an increase in wealth