The direct effect of an increase in the money supply is
A) people will spend the extra money, causing the aggregate demand curve to shift to the right and prices to rise, and causing the economy to go into recession.
B) people will save the money, causing an increase in bank deposits, causing interest rates to fall, and loans to expand.
C) people will save more money, causing a decrease in economic activity and a fall in prices.
D) people will spend the extra money, causing the aggregate demand curve to shift to the right, creating an increase in economic activity.
D
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An automatic increase in a wage rate found in some contracts is known as a
A) change of labor agreement. B) cost of labor arrangement. C) cost of living adjustment. D) charge for living amendment.
In Probability of Injury (x-axis) versus Wage (y-axis) space, isoprofit curves slope upward because
A. workers are willing to accept a lower wage in exchange for a riskier work environment. B. profits are constant with respect to risk. C. the firm does not like to pay higher wages. D. profits increase with the number of workers the firm employs. E. in order to keep profits constant, a higher wage must be offset by the firm saving money by not investing as much in preventing on-the-job injuries.
Which person provides an example of structural unemployment?
A. A fast-food worker who quits that job to find a better-paying job. B. A student who goes to school instead of working. C. A worker who stays at home to take care of children. D. A worker skilled at running an obsolete machine.
GDP excludes expenditures by:
A. businesses on pollution control equipment. B. business for travel and entertainment. C. consumers on used automobiles. D. government on military hardware.