A decrease in the quantity of money supplied at a given price level causes
A) no change in aggregate demand.
B) a decrease in aggregate demand.
C) an increase in aggregate demand.
D) an increase in aggregate supply.
Answer: B) a decrease in aggregate demand.
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Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ growth rate of output
A) leads to a higher B) leads to a lower C) has no long-run effect on the D) has an ambiguous effect on the
The Open Market Committee is composed of
a. the 7 members of the Board of Governors. b. the 7 members of the Board of Governors and the president of the Federal Reserve Bank in New York. c. 12 voting members, and of these, 5 are presidents of regional Federal Reserve banks and the other 7 are the members of the Board of Governors. d. the presidents of each of the 12 Federal Reserve banks.
Naomi Burko, who is a dairy farmer in Tigerton, Wisconsin, became unemployed because fewer and fewer people, concerned about their health, consumed butter. Naomi can best be described as
a. frictionally unemployed b. structurally unemployed c. cyclically unemployed d. not part of the labor force e. a discouraged worker
Which of the following is not an example of an intermediate good?
A. an oven bought by a homeowner B. gasoline bought by a trucking company C. flour bought by a bakery D. office supplies bought by an accounting firm