An increase in the money supply
a. raises the interest rate, causing an increase in quantity demanded of investment and an increase in GDP
b. lowers the interest rate, causing an increase in quantity demanded of investment and an increase in GDP
c. raises the interest rate, causing a decrease in quantity demanded of investment and an increase in GDP
d. lowers the interest rate, causing a decrease in quantity demanded of investment and an increase in GDP
e. lowers the interest rate, causing a decrease in quantity demanded of investment and a decrease in GDP
B
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A firm will only earn normal profit in the long run
a. if firms can freely enter or leave the market b. if firms do not try to maximize profit c. only if the industry is perfectly competitive d. whenever products are not differentiated e. if barriers to entry exist
Workers earn less than half of the income generated by the production process.
Answer the following statement true (T) or false (F)
The present value of net benefits (PVNB) is
a. found as (PVB – PVC) b. equal to the ratio of PVB to PVC c. equal to the ratio of PVC to PVB d. not relevant to benefit-cost analysis
Which of the following statements about a circular flow model is false?
A) Producers are buyers in the factor market and sellers in the product market. B) Households are neither buyers nor sellers in the input market. C) Households are buyers in the product market. D) Producers are buyers in the factor market.