The anticipated effect of contractionary monetary policy is
a. increase in aggregate demand.
b. fall in interest rates.
c. increased capital outflow.
d. appreciation of the currency.
d
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Bill is an economics professor who earns $40,000 teaching but decides to leave and fulfill his dream of catering barbecues. During his first year of barbecuing he earned total revenue of $60,000. He spent $30,000 on food and supplies
He also paid his wife $10,000 to help serve food. The normal profit for an entrepreneur running a barbecue business is $3,000. He also rented an industrial grill/fry truck for $12,000. An accountant would conclude that Bill's profit was A) $30,000. B) $20,000. C) $8,000. D) -$2,000. E) $40,000.
An increase in the money supply is represented by a(n):
a. rightward shift of the downward-sloping money supply curve. b. upward shift of the money supply curve. c. rightward shift of the money supply curve. d. increase in the rate of interest.
_____ are elements of fiscal policy that automatically change in value as national income changes
a. Statistical discrepancies b. Exchange rates c. Budget deficits d. Automatic stabilizers e. Supply-side shocks
In a market economy:
A. collective decision-making is more important than individual decision-making. B. goods and services are distributed as if by an "invisible hand" to those who can not afford them. C. profit provides an incentive to be productive. D. the distribution of wealth is equitably distributed.