An expansionary (or loose) ___________ policy raises the quantity of money and credit above what it otherwise would have been and reduces interest rates, boosting aggregate demand, and thus countering recession.
a. monetary
b. domestic
c. trade
d. banking
a. monetary
You might also like to view...
As the price level falls, buyers require less money for their purchases and the demand for money falls. A decrease in the demand for money will cause business investment to increase. This is called the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect
Externalities always consist of benefits that are not confined to the person or organization that decides how much of a good to produce or consume.
Answer the following statement true (T) or false (F)
Assume that smartphones are a normal good, and that the prices of smartphones have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen. Which of the
following best explains the falling prices of smartphones? A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left. B) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right. C) The demand curve and the supply curve for smartphones have both shifted to the left. D) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.
The price elasticity of demand along a linear demand curve is
A. one. B. infinite. C. more elastic at higher prices than at low prices. D. constant.