If investors feel that business conditions will deteriorate in the future, the demand for loans and the real interest rate in the loanable funds market will change in which of the following ways in the short run?
A) Increase/Increase
B) Increase/Decrease
C) Decrease/Increase
D) Decrease/Decrease
E) Decrease/No change
Ans: D) Decrease/Decrease
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How effective is discount policy as compared to open market operations in managing the money supply? Explain how The Federal Reserve uses discount policy today
What will be an ideal response?
The monetarist statistical evidence examines the correlations between both ________ and ________ with ________
A) money; aggregate spending; the unemployment rate B) money; autonomous expenditures; the unemployment rate C) money; consumption spending; aggregate spending D) money; autonomous expenditures; aggregate spending
The "New Keynesian" macroeconomics centered on
A) the assumption of continuous market-clearing. B) the importance of technological shocks. C) the imperfectness of the information held by economic decision-makers. D) the rational reasons for slow price and wage adjustment.
A sum of money to be received in the future is worth more than a sum of money today
a. True b. False Indicate whether the statement is true or false