According to the interest-rate-based monetary policy transmission mechanism
A) an increase in money supply will increase interest rates.
B) an increase in money supply will decrease interest rates.
C) a decrease in money supply will decrease interest rates.
D) a decrease in money supply will not change interest rates.
B
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Immigration shifts the national demand curve for labor to the
A. left, because immigrants compete with native workers for jobs. B. right, because immigrants compete with native workers for jobs. C. left, because immigrants are consumers as well as workers. D. right, because immigrants are consumers as well as workers.
What is the "reverse causality" problem in determining cause and effect?
A) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Z that caused a change in variable Y. B) It is a problem that arises when two variables are inter-connected so that a change in variable X causes a change in variable Y, and a change in variable Y causes a change in variable X. C) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X. D) It is a problem that occurs when one observes that a change in variable X caused a change in variable Y which caused a change in variable Z and concludes that a change in variable X caused a change in variable Z.
Critics of advertising argue that advertising
a. creates desires that otherwise might not exist. b. hinders competition. c. often fails to convey substantive information. d. All of the above are correct.
Refer to Figure 4.1. A Nash equilibrium can be found at
A) (Up; Top; Left) B) (Up; Top; Right) C) (Down; Bottom; Right) D) There is no Nash equilibrium.