All else held constant, if the supply of money is increased ________.
A. the interest rates will rise
B. the demand for money will increase
C. investment spending will increase
D. bond prices will fall
Answer: C
Economics
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Increases in inventories are subtracted from GDP because they reflect output that is produced but not sold
a. True b. False
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In a monopolistically competitive market, the seller maximizes profits by
A. setting P = ATC. B. setting price where P = MC. C. setting MC = ATC. D. setting price where MR = MC.
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Subsidies can be used to internalize positive externalities.
Answer the following statement true (T) or false (F)
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Fiscal policy most directly affects the economy by increasing or decreasing:
A. long-run aggregate supply. B. the money supply. C. interest rate. D. aggregate demand.
Economics