Easy money policy is _____.
(A) Monetary policy that increases the money supply.
(B) Monetary policy that reduces the money supply.
(C) The belief that the money supply is the most important factor in macroeconomic performance.
(D) The time it takes for monetary policy to have an effect.
Answer: (A) Monetary policy that increases the money supply.
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An agreement to exchange dollar bank deposits for euro bank deposits in one month is a
A) spot transaction. B) future transaction. C) forward transaction. D) deposit transaction.
In the Keynesian model, which of the following will cause a reduction in interest rates?
A) An increase in money demand B) An increase in money supply C) An increase in saving D) A decline in saving
Dissaving is
A) impossible in the simple Keynesian model. B) the situation when saving exceeds consumption. C) the situation when consumption spending exceeds disposable income. D) the situation when people save smaller and smaller amounts.
An increase in demand will: a. reduce total revenue
b. increase total revenue. c. increase total revenue only if supply is inelastic. d. increase total revenue only if supply is inelastic.