An increase in the money supply
a. lowers the interest rate, causing a decrease in investment and an increase in GDP.
b. lowers the interest rate, causing an increase in investment and a decrease in GDP.
c. lowers the interest rate, causing an increase in investment and an increase in GDP.
d. raises the interest rate, causing an increase in investment and an increase in GDP.
e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
C
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A) Y. B) bY. C) a. D) b.
The average tariff rate in the US today is about 40 percent, but it was only 1.6 percent in 1946
Indicate whether the statement is true or false
What does the existence of labor unions mean for the labor market and for unemployment?
A. Unemployment could reach zero. B. Wage rates could fall below equilibrium level. C. Wage rates could rise above equilibrium level. D. Unemployment could grow to unsustainable levels.
Historically, the government has used fiscal policy to affect the economy through
A. central planning. B. indicative planning. C. aggregate demand. D. aggregate supply.