If the Fed decreases the money supply, we should expect the interest rate
a. to fall, spending on automobiles and business investment spending to rise, and the price of bonds to increase
b. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to decrease
c. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to increase
d. to fall, spending on automobiles and business investment spending to fall, and the price of bonds to decrease
e. to rise, spending on automobiles to fall, business investment to rise, and the price of bonds to decrease
B
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If the producer is at combination B as shown in Table 3-2, the opportunity cost of increasing corn production by 1 unit is
A. 29 units of cotton. B. 5 units of cotton. C. 12 units of cotton. D. 4 units of cotton. E. 1 unit of cotton.
When the price of a normal good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
You own shares in a start-up internet company. If the company announces that it will not pay dividends next year as it has in the past, then the price of your shares will ________, holding other factors constant.
A. decrease B. not change C. either increase or decrease D. increase
An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus.
Answer the following statement true (T) or false (F)