Monetarists say:
A. that, because P is stable, a change in M will change Q proportionately in the opposite
direction.
B. a change in the money supply will change aggregate demand and therefore the nominal
GDP.
C. a change in the money supply will change velocity, which in turn will change nominal GDP.
D. a change in the money supply will change the interest rate, which will change investment
spending and nominal GDP.
B. a change in the money supply will change aggregate demand and therefore the nominal
GDP.
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The aggregate demand curve will shift to the left if
A) government expenditures increase. B) people are more optimistic about their future. C) the nation's exports decrease. D) a reduction in the price level pushes down borrowing costs.
Farmers who work for themselves with their own equipment on their own land could earn accounting profits and economic losses at the same time
a. True b. False Indicate whether the statement is true or false
If suppressed technologies exist then
A) CEOs must stress market share. B) CEOs are being inefficient. C) markets are too competitive. D) government must fund R and D.
The supply curve for a normal good always slopes downward because a rise in the price of a normal good almost always leads to an increase in the quantity supplied of that good
a. True b. False Indicate whether the statement is true or false