In the short run, an increase in the money supply will
a. decrease the interest rate, increase real GDP, and decrease the price level
b. increase the interest rate, decrease real GDP, and decrease the price level
c. result in decreases in the interest rate and real GDP, which are then followed by increases in the interest rate which offset some of the change in real GDP
d. result in decreases in the interest rate and increases in real GDP, which are then followed by increases in the interest rate which offset some of the increase in real GDP
e. result in an increase in the interest rate and a decrease in real GDP, which are then followed by decreases in the interest rate which offset some of the decrease in real GDP
D
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From 1970 to 2007 the quantity of M1 fell from 20 percent of GDP to less than 10 percent. This change is because the ownership of credit cards ________ during this time period since ________
A) expanded from 18 percent to 76 percent; credit cards became more widely available and utilized B) expanded from 18 percent to 76 percent; there were several recessions during that period C) fell from 76 percent to 18 percent; credit cards became less widely available and utilized D) remained unchanged; credit cards do not affect the quantity of money E) fell from 76 percent to 18 percent; there were several recessions during that period
The budget deficits of the 1980s and early 1990s differ from others in the post-World War II era in that they were
a. a result of the Fed rather than a change in fiscal policy. b. temporary rather than structural, and pose no threat to the economy. c. not contracted to fight a war or end a recession. d. contracted as part of a program to plan the economy.
If Nation A has an economic growth rate of 2 percent, and Nation B has an economic growth of 2.5 percent, Nation B’s economy will double approximately ______ years before Nation A’s economy.
a. 28 b. 7 c. 3.5 d. 35
If the CPI rose from 200 in 1992 to 260 in 1996, by what percentage did prices increase?
What will be an ideal response?