In the short-run, if the Federal Reserve decreases interest rates, then consumption and investment ________, aggregate expenditure ________, and short-run equilibrium output ________.
A. increase; increases; increases
B. increase; increases decreases
C. decrease; decreases; decreases
D. increase; decreases; decreases
Answer: A
You might also like to view...
The wage premium in the United States for college graduates over high school graduates has remained constant from 1978 to 2000.
Answer the following statement true (T) or false (F)
Economists are:
A) concerned with developing theories and interested in solving problems. B) interested in solving problems but not concerned with developing theories. C) reluctant to predict changes in variables such as prices, employment, and spending. D) always in agreement on the best way to implement policy decisions.
Ceteris paribus, when used by economists, means
A. all other things equal. B. for every action, there is a reaction. C. things never change. D. buyer beware.
A lump-sum tax means that:
A. the tax only applies to one time period. B. the same amount of tax revenue is collected at each level of GDP. C. tax revenues vary directly with GDP. D. tax revenues vary inversely with GDP.