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
You might also like to view...
If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
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.
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
Outline the policy choices for contractionary and expansionary options of the Fed