As part of the "wealth channel of monetary policy," a higher money supply __________ interest rates and thus __________ bond prices
A) raises; raises
B) raises; lowers
C) lowers; raises
D) lowers; lowers
C
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In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP
a. Keynesian, supply b. Classical, demand c. Intermediate, demand d. Intermediate, supply
A private good is characterized by excludability and depletability
a. True b. False Indicate whether the statement is true or false
After an extended period of steady inflation at a constant rate,
a. people will anticipate inflation. b. actual unemployment will approximate the natural rate of unemployment. c. actual unemployment will be less than the natural rate of unemployment. d. both a and b are true.
In order to increase the supply of a good, producers must
A) convince consumers to reduce the quantity demanded. B) see an increase in quantity supplied by competitors. C) reduce their per-unit costs of producing the good. D) cut back on labor to reduce production costs.