A decrease in the federal funds rate
A) increases other short-term interest rates, decreases investment, and decreases aggregate demand.
B) lowers the exchange rate, increases the supply of loanable funds, and increases aggregate demand.
C) lowers other sort-term interest rate, raises the real interest rate, and increases aggregate demand.
D) decreases the supply of loanable funds, raises the real interest rate, and decreases aggregate demand.
E) decreases the demand for loanable funds, lowers the real interest rate, and decreases aggregate demand.
B
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The events of September 11, 2001 had a major direct impact on the economy's GDP
a. True b. False
Some individuals choose to undertake risky prospects while others choose safer ones because they have different:
A. marginal utilities. B. degrees of transitivity. C. income elasticities. D. marginal rates of substitution between risk and reward.
Classical economists believe that:
A. velocity is not constant. B. changes in the money supply affect real GDP. C. the quantity of money explains prices. D. the money supply affects velocity.
In a market economy, those who are willing and able to buy what is produced
A) receive what the government allows them to receive. B) receive the most of what is produced. C) receive no more than everyone else in the market. D) solely determine what is produced.