A decrease in the money supply may __________ total expenditures and thus __________ aggregate demand
A) raise; raise
B) raise; lower
C) lower; raise
D) lower; lower
D
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Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?
A) The wage paid carpenters who build new houses might have risen. B) A technological advance in framing a new house might have occurred. C) The rent for nearby apartments might have fallen. D) More home buyers might have moved into the area. E) The cost of wood framing used to build houses might have fallen.
How might financial deepening contribute to poverty reduction?
What will be an ideal response?
Increases in productivity per person lead to increases in per capita income, which we call:
A. economic growth. B. the GDP deflator. C. the producer productivity index. D. GDP per capita.
In the short-run, the lowest price that a perfectly competitive firm will accept without closing its doors is found by examining the average variable cost curve
a. True b. False Indicate whether the statement is true or false