Changes in monetary policy aimed at reducing aggregate demand involve decreasing the money supply or increasing the interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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If macroeconomics looks at the economy as a whole, it focuses on which of the following?
A. households B. business firms C. unemployed people D. the division of labor
Which of the following is not a reason for the downward slope of an aggregate demand curve?
a. Real balances effect. b. Real interest-rate effect. c. Net exports effect. d. All of these are reasons.
If the percentage change in quantity demanded divided by the percentage change in price equals 1, then
a. supply is inelastic b. supply is elastic c. demand is elastic d. demand is inelastic e. demand is unit elastic
Discuss the role of trust as a critical piece of any principal-agent situation. In particular, what role did trust play in the recent stock market scandals?