The aggregate demand curve would shift to the left if
A. government spending were increased.
B. the cost of energy were to decrease.
C. the money supply were increased.
D. net taxes were increased.
Answer: D
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The liquidity preference theory ________
A) distinguishes between nominal and real quantities B) shows that demand for real balances depends on real income C) shows that demand for real balances depends on the nominal interest rate D) all of the above E) none of the above
Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effect of new entrants into a perfectly competitive market
The tendency for nominal interest rates to be high when inflation is high and low when inflation is low is known as:
A. deflating. B. shoe leather costs. C. the Fisher effect. D. the consumer price index.
What does monetary policy do?
(A) It mints new coins and prints bills. (B) It changes the way that taxes are collected. (C) It alters the supply of money. (D) It charters new banks.