Trace the cause-effect chain that results from a restrictive monetary policy.
What will be an ideal response?
A restrictive monetary policy will cause bank reserves to decline and the money supply to decrease. Interest rates will rise and this discourages investment spending. Real GDP will fall by a multiple of the decline in investment.
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A movement along the demand curve for a good can be attributed to a change in
a.the substitution effect of consuming a good
b.the demand for a good
c.the opportunity cost of producing a good.
d.the quantity demanded of a good
According to the bounded rationality hypothesis, an individual confronting a large number of complicated choices is most likely to respond by
A) using a simple rule of thumb to choose among a subset of easiest-to-evaluate options. B) using the ceteris paribus assumption to assist in simplifying and examining each of the possible options. C) utilizing readily available empirical evidence to assist in evaluating every option. D) assessing every available choice by developing sophisticated theories regarding each option.
An example of organizational architecture based on customer type is when divisions are defined as
a. R&D, Engineering, Production, Marketing, Sales b. Component 1 Plant, Component 2 Plant, Component 3 Plant, Final Assembly c. Store 1, Store 2, Store 3, Region A, Region B, Sales Division d. Business Customers, Educational Customers, Household Customers
As a result of a decrease in the price of online streaming movies, consumers download more movies online and buy fewer DVDs. This is an illustration of:
A. Consumer sovereignty B. The income effect C. The substitution effect D. Diminishing marginal utility