Which of the following best describes the cause-effect chain of an expansionary monetary policy?
A. A decrease in the money supply will lower the interest rate, increase investment spending,
and increase aggregate demand and GDP.
B. A decrease in the money supply will raise the interest rate, decrease investment spending,
and decrease aggregate demand and GDP.
C. An increase in the money supply will raise the interest rate, decrease investment spending,
and decrease aggregate demand and GDP.
D. An increase in the money supply will lower the interest rate, increase investment spending,
and increase aggregate demand and GDP.
D. An increase in the money supply will lower the interest rate, increase investment spending,
and increase aggregate demand and GDP.
You might also like to view...
After selling 1,000 three-ring binders Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost. From this we can conclude that
A) Tony should shut down his business temporarily. B) Tony's profit would be greater if he sold an additional three-ring binder. C) Tony's business earns a short-run economic profit. D) Tony's profit fell after selling his 1,000th three-ring binder.
When firms in an illegal market form a cartel, _____
a. they are able to supply higher quality products b. it becomes more difficult for police to detect their activities c. they are able to increase profits by behaving as a monopolist d. they face a deadweight loss e. they rely on goodwill to ensure the stability of the cartel
The daily vegetable market is an example of an oligopoly market structure
a. True b. False Indicate whether the statement is true or false
To an economist, maximizing profit is:
A. maximizing the value of the firm. B. minimizing the future risks. C. maximizing the current year's profits. D. minimizing the permanent total costs.