In the Keynesian model in the short run, an increase in the money supply will cause
A. an increase in the real interest rate and an increase in output.
B. an increase in output and a decrease in the real interest rate.
C. a decrease in the real interest rate but no change in output.
D. no change in either the real interest rate or output.
Answer: B
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The pig farm industry is perfectly competitive. Which of the following is true?
a. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. b. The competitive price is higher and quantity lower than the socially efficient point. c. The competitive price is higher and quantity higher than the socially efficient point. d. The competitive price is lower and quantity higher than the socially efficient point.
Barter transactions typically take place between two individuals with the same goods to supply
a. True b. False Indicate whether the statement is true or false
A & H Deliveries earned about $500,000 less than usual this year because of a downturn in the economy. The company also had to pay $200,000 less in taxes this year because their income and payroll were smaller. The decrease in taxes A & H had to pay during the downturn is an example of _____.
a. the crowding-out effect b. automatic stabilization c. discretionary policy d. a recognition lag
How does a firm raise external funds through direct finance?
What will be an ideal response?