The liquidity effect is the
A) increase in the interest rate brought on by an increase in GDP.
B) increase in the interest rate due to a higher expected inflation rate.
C) decrease in the interest rate due to an increase in the supply of loanable funds.
D) response, in terms of rate of flow, of the money supply to a change in government spending.
E) rate of change in the price level caused by a change in the supply of money.
C
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Use the following table to answer the next question.OutputATC-1ATC-2ATC-3ATC-41,500$10$15$20$302,00091217252,50081015203,00012713183,50015611164,00018107144,50020128125,00024151195,500291913126,00035251514Plant sizes get larger as you move from ATC-1 to ATC-4.At what level of output are economies of scale exhausted by this firm?
A. 3,500 units B. 4,000 units C. 2,500 units D. 5,500 units
A firm may pay efficiency wages in an attempt to
a. reduce incentives to shirk. b. reduce turnover. c. attract a well-qualified pool of applicants. d. All of the above are correct.
Economic profits are competed away in the long run for a monopolistic competitor because of the absence of significant _______________________.
Fill in the blank(s) with the appropriate word(s).
Are forecasts of economic activity accurate enough to permit “fine-tuning” of the economy?
A. No, forecasting is so inaccurate that it should be abandoned. B. No, forecasts are not accurate enough for this. C. Yes, forecasts are accurate and reliable enough for this. D. Yes, at least most of the time.