When the Fed unexpectedly increases the money supply, it will cause an increase in aggregate demand because:
a. real interest rates will fall, stimulating business investment and consumer purchases
b. the dollar will depreciate on the foreign exchange market, leading to an increase in net exports.
c. lower interest rates will tend to increase asset prices, which increases wealth and thereby stimulates current consumption.
d. of all the above reasons.
d
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An example of a natural monopoly is
A) a house. B) the Internet. C) air traffic control. D) fish in the ocean.
By human capital, economists mean
A) machines that replace humans. B) machines engineered to avoid operator injury. C) the accumulated skill and knowledge of humans. D) humans who perform repetitive tasks.
Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers
What will be an ideal response?
Over 50 percent of all U.S. workers now belong to unions.
Answer the following statement true (T) or false (F)