In the Keynesian model in the short run, a decrease in the money supply will cause
A) a decrease in output and an increase in the real interest rate.
B) an increase in the real interest rate but no change in output.
C) a decrease in the real interest rate and a decrease in output.
D) no change in either the real interest rate or output.
A
You might also like to view...
The figure shows the market for college education. If the market for education is competitive and with no government intervention, the equilibrium quantity of college students is ________ million and the efficient quantity of college students is
________ million. A) 2; 4 B) 8; 2 C) 8; 4 D) 4; 8 E) 0; 10
One implication of human capital theory is that college graduates should earn substantially less than high school graduates.
Answer the following statement true (T) or false (F)
The linear probability model always contains heteroskedasticity when the dependent variable is a binary variable unless all of the slope parameters are zero.
Answer the following statement true (T) or false (F)
Collectives in the Soviet Union were inefficient producers of agricultural products. Why?
(A) The farms were too small to produce substantial crops. (B) Most farmers were poor and ad to pay for their own equipment, seeds, and fertilizer out of their own pockets. (C) Soviet central planners ignored the farms in favor of factories producing consumer goods. (D) Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops.