In the Keynesian system, an increase in the money stock would
a. increase the interest rate, which, in turn, would increase aggregate demand and income.
b. decrease the interest rate, which, in turn, would decrease aggregate demand and income.
c. decrease the interest rate, which, in turn, would increase aggregate demand and income.
d. decrease the interest rate but would have no effect on aggregate demand and income.
C
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The economic system of the United States
A) was designed by mercantilists and capitalists. B) was designed by the framers of the U.S. constitution. C) was designed to maximize individual freedom. D) was designed to maximize output per capita. E) was the result of human intentions but not anyone's design.
When Frank's income rises from $29,000 to $34,000 per year, he increases his purchases of tomatoes from 20 pounds to 28 pounds per year
What is Frank's income elasticity of demand for tomatoes? (Use the midpoint formula.) According to Frank, are tomatoes an inferior or normal good?
At any given time, about 95% of the population in the United States lacks health insurance.
A. True B. False C. Uncertain
The greatest advantage of the railroad over earlier forms of transportation was its speed and its ability to stay open throughout most of the winter. Robert Fogel attempted to measure the advantage of faster all-weather transport by examining:
a. profits in transportation industries as a group. b. profits in railroads compared with canals. c. employment of labor and capital in the transportation sector before and after the railroad. d. inventories of agricultural products held in eastern markets.