According to liquidity preference theory, the money-supply curve would shift if the Fed
a. engaged in open-market operations.
b. increased money demand.
c. increased the real income.
d. did any of the above.
a
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The positively-sloped part of the long-run average total cost curve is due to which of the following?
A) Diseconomies of scale. B) Diminishing returns. C) The firm being able to take advantage of large-scale production techniques as it expands its output. D) The increase in productivity that results from specialization.
Economic choice and competitive behavior are the result of
a. basic human greed. b. poverty. c. private ownership of resources. d. scarcity.
Policymaking in a representative democracy
a. is straightforward and does not involve any disagreement. b. benefits from the input of economists, even if their advice is not always followed. c. is conducted without the input of economists. d. is always based exclusively on the results of economic analysis.
Movement from q1 to q* will cause which of the following to happen?
a. a decrease in profits
b. an increase in profits
c. a leveling off of profits
d. a fluctuation in profits