If policymakers are expected to increase the money supply, then Monetarists argue that bond demand and thus prices will __________
When it occurs, the actual increase in the money supply will have no further effect on bond prices and thus the anticipated higher inflation rate will cause interest rates to __________. A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
B
You might also like to view...
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
A decrease in wealth leads to a
A) downward movement along the supply of loanable funds curve. B) rightward shift of the demand for loanable funds curve. C) leftward shift of the demand for loanable funds curve. D) rightward shift of the supply of loanable funds curve. E) leftward shift of the supply of loanable funds curve.
Expansionary monetary policy causes a ________ the MP curve and a ________ the aggregate demand curve
A) movement to the right along; shift to the right of B) downward shift of; shift to the right of C) movement to the left along; movement down along D) upward shift of; shift to the right of
Given the following data, what is the distance from the origin to the point where the total expenditures (TE) curve cuts the vertical axis?
C = $800 + 0.85Yd
I = $350
G = $420
a.$770
b.$1,570
c.$1,150
d.$1,220
e.?$1,220.85