If people start to use cash because of an increase in credit card fraud, which of the following would we expect to happen under a neutralization policy?
a. The money supply would decrease, real GDP would not change, and the interest rate would not change.
b. The money supply would increase, real GDP would not change, and the interest rate would not change.
c. The money supply would decrease, real GDP would increase, and the interest rate would decrease.
d. The money supply would increase, real GDP would not change, and the interest rate would decrease.
e. The money supply would decrease, real GDP would decrease, and the interest rate would not change.
B
You might also like to view...
Refer to the table above. If the firm is a monopolistic competitor, up to what output will the firm produce?
A) 2 units B) 4 units C) 5 units D) 6 units
If a firm acquires the stock of a competing firm that causes a substantial lessening of competition, it would be in violation of the:
a. Clayton Act. b. Robinson-Patman Act. c. Sherman Antitrust Act. d. Federal Trade Commission Act. e. Interstate Commerce Act.
According to the Lucas supply function, when the income effect dominates the substitution effect, workers who experience a ________ price surprise will work ________ hours.
A. positive; more B. negative; fewer C. negative; the same number of D. positive; fewer
A major concern with the Social Security trust fund is that:
A. Surpluses for Social Security are too large B. The Federal government buys too many government securities C. Costs for administering the fund are greater than the current revenue D. The fund will exhausted in a couple of decades