An expansionary monetary policy is most likely to:
A. decreases interest rates, reduces investment, and decreases income.
B. decreases interest rates, raises investment, and increases income.
C. increases interest rates, raises investment, and increases income.
D. increases interest rates, reduces investment, and decreases income.
Answer: B
You might also like to view...
Suppose the equilibrium price in a perfectly competitive industry is $100 and a firm in the industry charges $112 . Which of the following will happen?
a. The firm will not sell any of its output. b. The firm will sell more output than its competitors. c. The firm's profits will increase. d. The firm's revenue will increase. e. The firm will gradually take over the entire industry.
The money supply and money demand curves are _____ and ______ respectively. a. Vertical; downward sloping
b. Upward sloping; vertical c. Upward sloping, downward sloping d. None of the above
Which of the following statements is true?
A) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops. B) France is the leading exporting country, accounting for 10 percent of total world exports. C) Japan is more dependent on foreign trade than is the United States. D) Imports and exports account for over one-half of the GDP of Belgium.
A decrease in the amount of human capital acquired by workers will lead to decrease in the supply of labor
Indicate whether the statement is true or false