Which of the following would tend to increase aggregate demand, other things equal?
a. An increase in the money supply curve
b. A decrease in the money supply curve.
c. An increase in the money demand cuvre.
d. Both a. and c. would tend to increase aggregate demand, other things equal.
a
You might also like to view...
Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. The firm currently produces q1 units. If all inputs doubled, the new level of output will equal
A) 20.4 q1. B) 20.8 q1. C) 0.8 q1. D) 1.6 q1.
An open-market purchase by the Federal Reserve withdraws excess reserves from the banking system and causes the money supply to contract
a. True b. False Indicate whether the statement is true or false
A perfectly elastic demand curve has an elasticity coefficient of:
a. 0. b. infinity. c. 1. d. less than 1.
The impact of monetary policy on the exchange rate is emphasized by
A) supply-side economists. B) Monetarists. C) Keynesians. D) rational expectations theorists.