An increase in the money supply would cause the FE line to
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
C
You might also like to view...
During the 1950s, the Fed targeted
A) M1. B) M2. C) the monetary base. D) money market conditions.
In Table 17.1, 
A. the United States has an absolute and comparative advantage in both goods. B. the United States has an absolute advantage in both goods but a comparative advantage in apples only. C. Brazil has an absolute advantage in both goods but a comparative advantage in coffee only. D. the United States has an absolute and comparative advantage in apples while, Brazil has an absolute and comparative advantage in coffee.
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 4,000 pounds
A) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low. B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high. C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. D) producers should raise the price to $9 in order to sell the quantity demanded of 4,000.
Foreign portfolio investment is sometimes called hot money because:
A. it can be withdrawn from a country very quickly. B. it is very difficult to trace. C. it is often invested in the assets which yield the highest returns in the world. D. earnings often go untaxed by the home government.