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

You might also like to view...

Increases in inventories are subtracted from GDP because they reflect output that is produced but not sold

a. True b. False

Economics

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.

Economics

Subsidies can be used to internalize positive externalities.

Answer the following statement true (T) or false (F)

Economics

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