When the Fed unexpectedly increases the money supply, it will cause an increase in aggregate demand because
a. lower interest rates will stimulate business investment and consumer purchases.
b. real interest rates will fall, causing the dollar to depreciate and net exports to rise.
c. lower interest rates will cause the value of assets (for example, stocks) to rise.
d. all of the above are correct.
D
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A nation's account with the IMF is called its
A) quota subscription. B) capital account. C) deposit surplus. D) current account.
The largest component of income is proprietors' income
Indicate whether the statement is true or false
Explain and give examples of other forms of barriers to free trade besides tariffs and quotas
Government procurement practices can restrict imports if the purchasing processes are heavily biased toward products with large local content.
Answer the following statement true (T) or false (F)