The indirect effect of an increase in the money supply is to
A) raise interest rates so people will save more.
B) lower interest rates, which stimulates both investment and consumption spending.
C) put more cash in people's pockets, thereby increasing aggregate demand.
D) pay off a portion of the public debt.
B
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Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate? a. It would increase
b. It would fall. c. It would change, but the effect cannot be predicted. d. It would not change.
Most corporations do not pay back their debt
a. True b. False
In a repeated? game, deterring entry
A) is not possible.
B) is not a rational strategy if money is lost fighting the first potential entrant.
C) may require losing money fighting the first potential entrant.
D) cannot form a subgame perfect Nash equilibrium.
M1:
A. is the sum of currency plus traveler's checks. B. is the narrowest definition of the money supply. C. includes small time deposits. D. includes credit cards.