When money demand decreases, the Fed can choose between:

a. increasing interest rates or increasing the supply of money.
b. increasing interest rates or decreasing the supply of money.
c. decreasing interest rates or increasing the supply of money.
d. decreasing interest rates or decreasing the supply of money.


d

Economics

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Increases in government spending result in ________ in the short run, and permanent increases in government spending result in ________ in the long run

A) complete crowding out; complete crowding out B) partial crowding out; partial crowding out C) partial crowding out; complete crowding out D) complete crowding out; partial crowding out

Economics

Because special interest groups tend to favor transfer policies rather than economic growth policies, many economists believe that these special interest groups help to improve economic efficiency.

Answer the following statement true (T) or false (F)

Economics

If MRS's are equal across all consumers, then the efficient product mix has been achieved

Indicate whether the statement is true or false

Economics

"My brother is better at cooking, better at cleaning, and better at fixing the car than I am." Relative to me, my brother has

A. an absolute advantage in cooking, cleaning, and car repair. B. more income than me. C. a comparative advantage in cooking, cleaning, and car repair. D. more intelligence than me.

Economics