Which of the following examples is most likely the result of an expansionary monetary policy?

a. Robert decides now is not the right time to buy a motorcycle.
b. Monica places most of her money in a savings account.
c. Charles takes out a loan to purchase a new motorboat.
d. Susan sells her second car to get more ready cash.


c. Charles takes out a loan to purchase a new motorboat.

Economics

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According to Keynesian economists, when the price level is constant, an upward shift in the aggregate expenditure curve is associated with

a. a rightward shift (increase) in the aggregate demand curve b. a leftward shift (decrease) in the aggregate demand curve c. a rightward shift (increase) in the aggregate supply curve d. a leftward shift (decrease) in the aggregate supply curve e. no change in either the aggregate demand or aggregate supply curves

Economics

Explain the difference between inferior and normal goods. As a developing economy experiences increases in income (measured by GDP), what would you predict to happen to demand for inferior goods?

Economics

If GNP is $500 billion, receipts of factor income from the rest of the world are $15 billion, and payments of factor income to the rest of the world are $5 billion, then GDP is

A. $480 billion. B. $490 billion. C. $510 billion. D. $520 billion.

Economics

An economist estimates that on average, for every 1 percent increase in income, the quantity of European cars demanded increases by 1.93 percent. From this information one can conclude that European cars are:

A. a luxury. B. a negative good. C. an inferior good. D. a necessity.

Economics