According to Keynesians, which of the following describes the cause-and-effect process by which changes in the money supply create changes in aggregate demand?
a. An increase in the money supply causes interest rates to fall, which causes investment to rise, which causes the aggregate demand curve to shift to the left
b. A decrease in the money supply causes interest rates to rise, which causes investment to rise, which causes the aggregate demand curve to shift to the right.
c. A decrease in the money supply causes interest rates to fall, which causes investment to rise, which causes the aggregate demand curve to shift to the right.
d. An increase in the money supply causes interest rates to fall, which causes investment to rise, which causes the aggregate demand curve to shift to the right.
e. An increase in the money supply causes interest rates to rise, which causes investment to rise, which causes the aggregate demand curve to shift to the right.
D
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3?
A) 6 B) 9 C) 15 D) 20
When Congress does not pass the necessary budget resolutions by the time the new fiscal year starts, they need to pass a ______ in order to keep agencies operating
a. budgetary extension b. continuing resolution c. continuing extension d. emergency budgetary declaration
When the economy was at full employment in the late 1990s, the price level was continually rising. This meant
a. the Fed was pursuing a passive monetary policy. b. the Fed was pursuing an active monetary policy. c. hawk and dove policies canceled each other out. d. the economy's self-correcting mechanism was not operating. e. none of the above.
An American computer is priced at $1,200. If the exchange rate between the U.S. dollar and the Mexican peso is $0.09 = 1 peso, approximately how many pesos would a Mexican buyer pay for the computer?
A) 13,333 pesos B) 108 pesos C) 133.50 pesos D) 15,075 pesos