If the economy is operating in the relatively steep (upper) portion of its aggregate supply curve, a reduction in the money supply will:
A. increase the interest rate and increase employment.
B. reduce the interest rate and increase employment.
C. increase the interest rate and reduce the price level, assuming it is flexible downward.
D. reduce the interest rate and increase the price level.
C. increase the interest rate and reduce the price level, assuming it is flexible downward.
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Tax expenditures can be viewed as government spending through the tax code
a. True b. False
Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, producer surplus is:
A. 28
B. less than the consumer surplus.
C. 16
D. $32.
The adverse selection problem is least likely in which of the following occupations?
a. lawyer b. barber c. college professor d. marketing analyst e. manager
Inflation makes money an imperfect store of value.
Answer the following statement true (T) or false (F)