An expansionary monetary policy raises firms' cash flows by ________ interest rates
A) lowering real
B) lowering nominal
C) raising real
D) raising nominal
B
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Equilibrium price and quantity are determined by:
A. both supply and demand. B. demand. C. supply. D. government regulations.
Suppose Kaylee withdraws $4,000 from her bank. If the reserve ratio is 25 percent, then this will lead to a decrease in M1 of
A) $1,000. B) $4,000. C) $8,000. D) $12,000.
Increases in real GDP would overstate the increase in the well-being of a country over time if, over that time period, the
A) price level increased. B) amount of pollution decreased. C) crime rate decreased. D) average hours worked per week increased.
A decrease in inflationary expectations __________ interest rate
A) raises the natural B) raises the nominal C) lowers the natural D) lowers the nominal