Which of the following result from a change in the money supply brought about by an open market sale?
A) lower interest rate, higher exchange rate, decreased demand for investment and net exports
B) higher interest rate, higher exchange rate, decreased demand for investment and decreased demand for net exports
C) lower interest rate, lower exchange rate, increased demand for investment and net exports
D) higher interest rate, lower exchange rate, decreased demand for investment and increased
demand for net exports
Ans: B) higher interest rate, higher exchange rate, decreased demand for investment and decreased demand for net exports
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What are the effects of an increase in the population on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?
What will be an ideal response?
Figure 3.3 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, there is an:
A. excess demand of 8 t-shirts. B. excess supply of 8 t-shirts. C. excess demand of 10 t-shirts. D. excess supply of 10 t-shirts.
In Figure 15.2, the equilibrium rate of interest
A. Is 9 percent. B. Is 6 percent. C. Is 3 percent. D. Cannot be determined from this figure.
The phrase "smart for one, but dumb for all" refers to the idea that the individual pursuit of self-interest:
A. never leads to an efficient outcome. B. doesn't always lead to an efficient outcome. C. always leads to an efficient outcome. D. only leads to an efficient outcome when everyone is well-informed.