Which of the following best describes the cause-effect chain of a restrictive monetary policy?
A. A decrease in the money supply will lower the interest rate, increase investment spending,
and increase aggregate demand and GDP.
B. A decrease in the money supply will raise the interest rate, decrease investment spending,
and decrease aggregate demand and GDP.
C. An increase in the money supply will raise the interest rate, decrease investment spending,
and decrease aggregate demand and GDP.
D. An increase in the money supply will lower the interest rate, decrease investment
spending, and increase aggregate demand and GDP.
B. A decrease in the money supply will raise the interest rate, decrease investment spending,
and decrease aggregate demand and GDP.
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Regression analysis is designed to show any systematic pay differences between men and women
A) that are based only on gender difference. B) that are based on differences in education levels and majors. C) that are based on differences in career choices. D) that are based on differences in job experience.
Command-and-control regulation is flexible
a. True b. False Indicate whether the statement is true or false
In which of the following groups are ALL of the elements associated with a fixed-rate exchange system?
a. speculative rampages; major currency revaluations; currency shortages b. inflationary pressures; currency shortages; wage controls c. speculative rampages; domestic price controls; futures market d. inflationary pressures; dirty float system; daily currency price changes
Most economists agree that the best rate of inflation for a stable economy would be around:
A. five to six percent. B. zero. C. seven percent. D. two to three percent.