If the Fed decreases the money supply, gross domestic product:
a. increases by the same amount as the increase in the interest rate
b. decreases by a greater amount than the increase in the interest rate because of the multiplier.
c. decreases by the same amount as the decrease in investment.
d. decreases by a greater amount than the decrease in investment because of the multiplier.
e. decreases by a lesser amount than the decrease in investment because of the multiplier.
d
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Honda will sell its vehicles to anyone who wants to and can buy one. Honda is using a ________ allocation method
A) first-come, first-served B) market price C) contest D) majority rule E) command
The percentage of the population that lived in urban areas rose from approximately 5% in 1790 to 40% in 1860
Indicate whether the statement is true or false
If investment is not sensitive to changes in the interest rate, then changes in the money supply: a. will have no effect on interest rates
b. will have no impact on the quantity of money demanded. c. will have no effect on the aggregate demand of an economy. d. will have a major impact on the aggregate demand of an economy. e. will have a major impact on the price level in an economy.
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
a. there is a surplus and the interest rate is above the equilibrium level. b. there is a surplus and the interest rate is below the equilibrium level. c. there is a shortage and the interest rate is above the equilibrium level. d. there is a shortage and the interest rate is below the equilibrium level.