Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise.
b. Demand for real goods and services to rise and M2 money supply to fall.
c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same.
d. Demand for real goods and services to rise and monetary base to remain the same.
.D
You might also like to view...
Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is
A. not in the labor force. B. in the labor force. C. employed. D. unemployed.
When prices in the goods and services market are below the level anticipated,
a. output will temporarily exceed the economy's long-run potential. b. output will temporarily fall short of the economy's long-run potential. c. output will be equal to the economy's long-run potential. d. the actual rate of unemployment will be less than the natural rate of unemployment.
In the market for money, the behavior of savers is represented by the
A. supply curve. B. demand curve. C. a combination of the supply and demand curves. D. neither the supply curve nor the demand curve.
Which of the following statements best describes the figure shown?
A. Potential output is constrained by globalization. B. The economy is operating below potential because of globalization. C. Domestic aggregate supply is less than domestic aggregate demand. D. The world price level equals the domestic price level.