In the short run, a decrease in the money supply causes interest rates to
a. increase, and aggregate demand to shift right.
b. increase, and aggregate demand to shift left.
c. decrease, and aggregate demand to shift right.
d. decrease, and aggregate demand to shift left.
b
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In spring 2008, the U.S. Congress proposed to tax oil companies because of their near-monopoly status. This could have the unintended consequence of
A) increasing the equilibrium price by more than the tax. B) destroying the oil companies and leaving the United States without oil. C) increasing the profit of the best oil company. D) decreasing the power of the U.S. Congress.
Explain the infant industry argument case against free trade
What will be an ideal response?
The ability to produce a good at lower opportunity costs than another producer is known as
A) comparative advantage. B) marginal cost production. C) economies of scale. D) absolute advantage.
A breakdown in price leadership leading to successive rounds of price cuts is known as:
A. limit pricing. B. a price war. C. informal pricing. D. price discrimination.