Restrictive monetary policy will:
A. Decrease the lending capacity for banks.
B. Reduce interest rates.
C. Cause a rightward shift of aggregate demand.
D. Raise the equilibrium price level.
A. Decrease the lending capacity for banks.
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Which of the following organizations was NOT the result of the Bretton Woods Conference in 1944?
A) the League of Nations B) the General Agreement on Tariffs and Trade C) the International Monetary Fund D) the International Bank for Reconstruction and Development
Increase in supply mean a new supply (subsidy) line . . .
What will be an ideal response?
Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consumer goods200 180 140 80 0 In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect
A. less growth in the future because it will use up its consumer goods. B. more growth in the future because of the accumulation of capital. C. the same amount of growth in the future but with a lower standard of living. D. the same amount of growth in the future but with a higher standard of living.