Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; decrease
B) lower; have an ambiguous effect on
C) have an ambiguous effect on; decrease
D) raise; decrease
C
You might also like to view...
In the figure above, the expected inflation rate is
A) 6 percent. B) 0 percent. C) 2 percent. D) 8 percent. E) 4 percent.
Families receive income from two primary sources:
a. resource earnings and transfers b. transfers and subsidies c. wages and rents d. transfers and gifts e. interest and dividends
In long-run equilibrium, a profit-maximizing firm in a monopolistically competitive industry will produce the quantity of output where
A. ATC < P, MR = MC = P. B. ATC = P, MR = MC < P. C. ATC < P, MR + MC < P. D. ATC = P, MR = MC = P.
What is the level of net benefits when four units are produced?No. units producedTotal RevenueTotal costs0001100502180110325018042902705310380
A. 20 B. -70 C. 70 D. 0