In the Keynesian model, and expected increase in the interest rate
a. increases the demand for bonds and the demand for money.
b. increases the demand for bonds and the demand for stocks.
c. decreases the demand for bonds and increases the demand for money.
d. increases the demand for bonds and decreases the demand for money.
C
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If inflation in the United States is lower than inflation in other countries, what will be the effect on net exports for the United States?
A) Net exports will rise as U.S. exports increase. B) Net exports will decrease as U.S. imports decrease. C) Net exports will decrease as U.S. exports decrease. D) Net exports will rise as U.S. imports increase.
A slowing U.S. economy and increased enforcement of immigration laws will reduce ________ factors for Mexican immigration to the United States
A) demand growth B) demand pull C) supply push D) supply growth E) network
Assume that the marginal propensity to consume out of disposable income is 0.8 and that the government taxes all income at a constant rate of 30%. If the gross income increases by $100, consumption will initially increase by
A) $44 B) $56 C) $70 D) $80 E) $100
Suppose that production for good X is characterized by the following production function, Q = 4K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $12 and the per-unit wage, w, is $20, then the average total cost of using 25 units of capital and 49 units of labor is:
A. $9.14. B. $6.25. C. $10.07. D. There is insufficient information to determine the average total costs.