To "accommodate" an expansionary fiscal policy, the Fed ________ the money supply in order to hold ________ constant
A) expands, the interest rate
B) expands, real income
C) contracts, the interest rate
D) contracts, real income
A
You might also like to view...
Assume the price of product A increases from $1 to $1.50, while the price of competing product B increases from $1.50 to $2.00
Based on the information, what we can say about the absolute and relative price differences between the two products and the relative attractiveness of the two products to consumers.
Given the Leontief production function Q = min{5.5K, 6.7L}, how much output is produced when K = 40 and L = 35?
A. 268 B. 192.5 C. 234.5 D. 220
The external marginal cost of producing coal is MCexternal = 8Q while the internal marginal cost is MC internal = 6Q. The inverse demand for coal is given by P = 180 ? 4Q. How much output would a competitive industry produce?
A. 10 B. 20 C. 18 D. 15
What determines the slope of the aggregate supply curve is
A. how much more the economy can produce without any change in the price level. B. how fast the output level changes after a technological advance. C. how fast the price of factors of production respond to changes in the price level. D. none of the above.