The inflationary effect of an expansionary monetary policy depends on the slope of the aggregate supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the long-run equilibrium?
A) E3 B) E1 C) P1 D) E2
Which of the following is not a component of the aggregate demand curve?
a. Government spending (G). b. Investment (I). c. Consumption (C). d. Net exports (X-M). e. Saving.
If the government decides to spend an extra $4 billion on fighter jets that they would otherwise have spent on computers, and the MPC = 0.75, what is the effect on AD?
a. AD increases by $20 billion. b. AD increases by $16 billion. c. AD increases by $4 billion. d. AD does not change.
Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate. If the company's stock value decreases by 5% in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?
a. ?5% b. ?10% c. ?20% d. ?30%