According to Keynes, the effect on planned real investment spending resulting from the interest-rate impact of a decrease in the money supply
A. impacts the economy by increasing the deficit.
B. impacts the economy by reducing the value of the U.S. dollar.
C. impacts the economy through the multiplier.
D. does not impact the economy.
Answer: C
You might also like to view...
To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of a(n):
a. upward movement along the supply curve for cigarettes. b. rightward shift of the supply curve for cigarettes. c. upward movement along the demand curve for cigarettes. d. leftward shift of the supply curve for cigarettes.
In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic profits are zero. (iii) price equals minimum marginal cost. (iv) price equals minimum average total cost
a. (i) and (ii) only b. (ii) and (iii) only c. (ii) and (iv) only d. (i), (ii), (iii), and (iv)
A new Mexican restaurant opens in the city of Manchester. The other restaurant owners are not happy about this new restaurant because they are experiencing what externality?
Suppose that utility-maximizing consumers in San Francisco pay three times as much for apples as for peaches. What is the ratio of the marginal utility of apples to the marginal utility of peaches?
A. 1/3 B. 3 C. 2/3 D. none of the above E. cannot determine without further information