What determines the magnitude of the changes in price level when central bank takes monetary policy measures that leads to a change in the aggregate demand?
A. Changes in the money supply
B. Slope of the aggregate supply curve
C. Rate of change of interest rate
D. Total money supply in the economy
Answer: B
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Everything else held constant, an increase in the money market fund ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Which of the following does NOT affect a worker's marginal productivity?
A) education B) training C) talent D) inheritance of money
Oil found underground in Texas is an example of:
a. labor. b. land or a natural resource. c. an entrepreneur. d. human capital. e. capital resource.
When the Fed increases the money supply, interest rates
a. rise, causing velocity to fall. b. fall, causing velocity to fall. c. rise, causing velocity to rise. d. fall, causing velocity to rise.