Spending VCU4 on real-world goods and services causes the nation's:

a. Demand for real goods and services to rise and M2 money supply to remain the same.
b. Demand for real goods and services to remain the same and M2 money supply to remain the same.
c. Demand for real goods and services to rise and M2 money multiplier to rise.
d. Demand for real goods and services to remain the same and M2 money supply to rise.


.A

Economics

You might also like to view...

The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is regulated, what is its economic profit if it must follow an average cost pricing rule?

A) -$60 B) -$20 C) $0 D) $30

Economics

Which of the following is the best definition of economics?

a. An investigation of the quantities and prices of the various goods produced by the nations of the world. b. A study of why inflation and unemployment periodically plague the U.S. economy. c. An analysis of how individuals and societies deal with the problem of scarcity. d. An examination of the role that money plays in the economy. e. A study of how goods and services are distributed throughout the world.

Economics

Which of the following is the correct way to describe equilibrium in a market?

A) At equilibrium, demand equals supply. B) At equilibrium, quantity demanded equals quantity supplied. C) At equilibrium, market forces no longer apply. D) At equilibrium, scarcity is eliminated.

Economics

A gas tax holiday would

A. affect the market for gasoline. B. affect the level of congestion on roads. C. affect the market for air travel. D. All of the above are correct.

Economics