The short-run effects on the interest rate are

a. shown equally well using either liquidity preference theory or classical theory.
b. best shown using classical theory.
c. best shown using liquidity preference theory.
d. not shown well by either liquidity preference theory or classical theory.


c

Economics

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A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall

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The main disadvantage to organizing a business as a proprietorship is

A) its complex management structure. B) limited liability. C) unlimited liability. D) that economic profit cannot be maximized.

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Refer to the above figure. What price-output combination would apply under perfect competition?

A) P4 and Q1 B) P3 and Q2 C) P2 and Q3 D) P1 and Q1

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Outline the policy choices for contractionary and expansionary options of the Fed

Economics