When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. increases, while the demand for loanable funds decreases.
B. decreases, while the demand for loanable funds increases.
C. and the demand for loanable funds both decrease.
D. and the demand for loanable funds both increase.
A. increases, while the demand for loanable funds decreases.
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How does the Fed increase the level of reserves in the banking system?
A) by lowering interest rates B) by buying bonds C) by raising interest rates D) by selling bonds
Assume the market for used single-family homes is initially in equilibrium. All else constant, an increase in home foreclosures would cause equilibrium price and quantity to decrease
Indicate whether the statement is true or false
Supply curves generally slope upward because of all of the following reasons except one. Which is the exception?
a. Producers are willing to offer more of a good at higher prices. b. A higher price attracts resources from less-valued uses. c. Producers must be compensated for the rising opportunity cost of additional output. d. Producers have a greater incentive to sell more as the price increases. e. The price of a good usually must fall to induce an increase in quantity supplied.
The natural rate of unemployment is the
a. unemployment rate that would prevail with zero inflation. b. rate associated with the highest possible level of GDP. c. difference between the long-run and short-run unemployment rates. d. amount of unemployment that the economy normally experiences.