If the Fed increases the money supply in response to positive demand shocks, it
a. lowers the interest rate
b. reduces each type of unemployment
c. adds its own positive demand shock
d. creates financial stability
e. crowds out private investment
C
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Total utility is maximized in the consumption of two goods by
A) maximizing expenditure on each good. B) equating the marginal utility for each good consumed. C) equating the total utility of each good divided by its price. D) equating the marginal utility per dollar for each good consumed.
Industrial countries are not usually involved in currency bailouts since they are not likely to be affected by the devaluation of another country's currency.
Answer the following statement true (T) or false (F)
If Q represents real GDP and P is the price level, then P × Q equals ______.
a. real NI b. real NNP c. nominal NNP d. nominal GDP
How does corruption contribute to government failure?
Please provide the best answer for the statement.