According to Figure 7-1, a decrease in the money stock
a. lowers the interest rate to r1.
b. raises the interest rate to r2.
c. leaves the interest rate at r0.
d. None of the above
B
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Which point in the figure above is an attainable combination that would have unemployed resources?
A) point A B) point B C) point C D) point D E) point A and point B
Education makes people more receptive to new ideas and methods, which leads to economic development
a. True b. False
Assuming that clothing is a normal good, an increase in consumer income, other things being equal, would:
a. increase the demand for clothing. b. decrease the demand for clothing. c. increase the quantity of clothing demanded. d. decrease the quantity of clothing demanded
In the short run, a decrease in the money supply will lead to a(n) _____
Fill in the blank(s) with the appropriate word(s).