If the Fed decreases the money supply, the interest rate
a. decreases and aggregate spending increases.
b. decreases and aggregate spending decreases.
c. increases and aggregate spending decreases.
d. increases and aggregate spending increases.
e. increases and money demand decreases.
C
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Suppose the Fed purchases Treasury securities. Interest rates in the United States will ________ and the U.S. dollar will ________ against foreign currencies
A) decrease; appreciate B) increase; depreciate C) decrease; depreciate D) increase; appreciate
The substantial fluctuations in velocity make the equation of exchange more useful in predicting changes in nominal GDP
a. True b. False Indicate whether the statement is true or false
Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a
a. private good. b. club good. c. common resource. d. public good.
The growth rate of real GDP in the United States rises from 4.2% to 4.4%. Explain and calculate how this increase in the growth rate of real GDP affects the number of years it will take for real GDP to double
What will be an ideal response?