The figure above illustrates the effect of
A) an increase in real GDP.
B) a decrease in real GDP.
C) an increase in the monetary base.
D) a decrease in the monetary base.
B
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Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?
A) Panel A B) Panel B C) Panel C D) Panel A and Panel B
Which of the following is perhaps the greatest obstacle facing the Fed in discharging monetary policy?
A) the difficulties involved in regulating the complex structure of financial institutions B) the problem of monetary policy lags C) the problem of identifying a monetary measure that is closely linked to real GDP D) the problem of coordinating monetary and fiscal policy
All else remaining equal, if the amount of money market deposit accounts increase, this will increase the size of:
a) only M1. b) only M2. c) M1 and M2. d) neither M1 nor M2.
A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. rise; fall B. fall; rise C. fall; fall D. rise; rise