In Figure 15.4, a decrease in the money supply from $135 billion to $100 billion will cause all of the following except
A. A decrease in aggregate demand.
B. A decrease in the price level.
C. An increase in borrowing.
D. A $10 billion decrease in investment.
Answer: C
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The slope of a line
A) can never equal zero. B) is always a constant. C) measures the ratio of the change in the value of the y-axis variable relative to the change in the value of the x-axis variable. D) measures the value of the y-axis variable relative to the value of the x-axis variable.
When the government imposes a tax equal to the external cost of producing a product that causes pollution, the government is said to externalize the externality
Indicate whether the statement is true or false
The law of diminishing marginal returns is seen in the
A) calendar year. B) short run. C) long run. D) market horizon.
Suppose the nominal interest rate in Brazil is 40 percent and the expected inflation rate is 150 percent. The real interest rate is:
A. 1-90 percent. B. 190 percent. C. 1-10 percent. D. 110 percent.