When the policy rate hits its lower bound and inflation keeps falling, this portion of the aggregate demand curve is
A) downward sloping.
B) upward sloping.
C) flat.
D) undetermined.
B
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In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is ________ percent and the equilibrium quantity of loanable funds is ________
A) 6; $1.6 trillion B) 4; $1.8 trillion C) 4; $1.4 trillion D) 6; $2.0 trillion E) 4; $2.0 trillion
The longest economic expansion in the United States occurred during the
A) 1940s. B) 1960s. C) 1980s. D) 1990s.
________ in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant
A) An increase; right B) An increase; left C) A decrease; right D) A decrease; left
The precautionary demand for money arises
A. because people feel relatively certain what the future will bring. B. because individuals are uncertain about the future. C. when nominal income exceeds potential income. D. as important exceptions to the Keynesian model. E. because the transaction demand for money is never adequate to absorb the money supply.