An increase in the supply of money will lead to ____ in equilibrium real GDP and ____ in equilibrium price level.
A. an increase; an increase
B. an increase; a decrease
C. a decreases; an increase
D. a decrease; a decrease
Answer: A
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Indicate whether the statement is true or false
In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to
A) 2.50. B) 1.63. C) 0.40. D) 0.62. E) 1.00.
If you have found the percentage of the value of total revenue accounted for by the four largest firms in an industry, you have found the
A) elasticity of demand value. B) elasticity of supply value. C) Herfindahl-Hirschman Index. D) four-firm concentration ratio. E) monopolistic concentration index.
Which of the following is counted as a liability for a bank?
A) customer deposits B) bank reserves C) securities D) bank loans