A contractionary monetary policy decreases the money supply and the interest rate, which decreases investment and output.
Answer the following statement true (T) or false (F)
False
A contractionary monetary policy decreases the money supply and increases the interest rate, which decreases investment and output.
You might also like to view...
Describe three costs of inflation
Which statement is true?
A. In 1911 the Supreme Court decided to break up the oil and tobacco trusts. B. The rule of reason today is partially in force. C. Until the ALCOA case, the Supreme Court generally held that bigness was all right as long as the company wasn't bad. D. All of the statements are true.
The AD curve will shift when there is a change in:
A. the inflation rate or the money growth rate. B. the money growth rate or the velocity growth rate. C. the real growth rate or the inflation rate. D. the velocity growth rate or the real growth rate.
Assume the total product of two workers is 130 and the total product of three workers is 150. The average product of three workers is ________, and the marginal product of the third worker is ________.
A. 40; 10 B. 120; 100 C. 13.33; 6.67 D. 50; 20