In Figure 15.2, if the money supply decreased from $200 billion to $100 billion, which of the following would be likely to occur?
A. The quantity of money demanded would increase.
B. Aggregate demand would decrease.
C. Aggregate supply would increase.
D. The demand for money would increase.
Answer: B
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What is the current equilibrium price level and real GDP for the economy illustrated in the figure above? Does this economy have an inflationary gap, a recessionary gap, or neither?
As it adjusts toward full employment, which curve shifts? What is the equilibrium real GDP and price level that the economy will ultimately reach?
The reason Bitcoin's growth rate is very similar to Milton Friedman's k-percent rule is because:
a. Bitcoin has no control over the virtual currency's growth rate. Rather, its growth depends on how quickly individuals and merchants use and accept the currency. b. It is not tied to any nation's business cycle. c. Bitcoins are programmed to increase at the same rate as the world's real GDP. d. All of these statements are true.
Stock represents
a. a claim to a share of the profits of a firm. b. ownership in a firm. c. equity finance. d. All of the above are correct
Which of the following fiscal policy changes would be the most contractionary?
A. A $40 billion increase in taxes B. A $10 billion increase in taxes and a $30 billion cut in government spending C. A $20 billion increase in taxes and a $20 billion cut in government spending D. A $30 billion increase in taxes and a $10 billion cut in government spending