Which of the following reduces the interest rate?
a. an increase in government expenditures and an increase in the money supply
b. an increase in government expenditures and a decrease in the money supply
c. a decrease in government expenditures and an increase in the money supply
d. a decrease in government expenditures and a decrease in the money supply
c
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When a game has more than one Nash equilibrium
a. players will choose the strategies which maximize total welfare. b. players are likely to choose the strategies which minimize total welfare. c. it is difficult to predict which of the equilibria will occur or whether it is stable. d. it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.
The United States finances current account deficits largely with dollars and, as a result, faces almost no constraint on its ability to run deficits
Indicate whether the statement is true or false
The supply curve for loanable funds would increase due to a(n)
A) increase in wealth. B) increase in expected inflation. C) decrease in the liquidity of bonds relative to other assets. D) increase in the information costs of bonds relative to other assets.
A liquidity trap is
a. the vertical portion of the LM schedule. b. the horizontal portion of the LM schedule. c. a situation where a given change in the money stock induces a large reduction in the interest rate. d. Both a and c e. Both b and c