Suppose the demand for money and the supply of money increase simultaneously. We can:
A. expect the interest rate to rise and bond prices to fall.
B. expect the interest rate to fall and bond prices to rise.
C. the nominal GDP to expand.
D. not accurately predict what will happen to interest rates or bond prices.
D. not accurately predict what will happen to interest rates or bond prices.
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"I really enjoy watching movies. The first one is best. After that I still enjoy movies but the last one is not as much fun to watch as the one before it." This statement reflects the
A) principle of diminishing total utility. B) principle of diminishing marginal utility. C) principle of increasing marginal utility. D) law of supply.
What is utility and how do we use the concept of utility to describe a consumer's preferences?
What will be an ideal response?
Consumer surplus is the difference between the minimum amount a person would be willing to pay for a good and the amount the person actually paid
Indicate whether the statement is true or false
In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that high energy prices in the late 1970s caused ______.
a. an increase in price levels and a decrease in RGDP
b. a decrease in price levels and an increase in RGDP
c. an increase in both price levels and RGDP
d. a decrease in both price levels and RGDP