Assuming that the central bank is following a money stock targeted, an exogenous rise in investment demand
a. causes income to rise but the money stock has to be increased to accommodate the expansion.
b. has to be accommodated with open market purchases to expand the money stock.
c. increases income, money demand, and lowers the interest rate.
d. increases income and money demand and lowers the interest rate.
e. none of the above.
E
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When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy
a. True b. False Indicate whether the statement is true or false
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