In the short run in the Keynesian model, an increase in the domestic money supply would cause domestic output to ________ and the domestic real interest rate to ________
A) rise; rise
B) fall; rise
C) rise; fall
D) fall; fall
C
You might also like to view...
Which of the following relationships correctly identifies the profit maximization condition of a firm in a perfectly competitive market?
A) Marginal cost < Price = Marginal revenue B) Marginal cost > Price = Marginal revenue C) Marginal cost = Price = Marginal revenue D) Marginal cost = Price < Marginal revenue
The Articles of Confederation and Perpetual Union (1781) adequately addressed the free-rider problems by setting up a tax system that required all states to share the costs of providing national defense, protecting private property rights, regulating
commerce with other countries and across states and upholding a system of laws. Indicate whether the statement is true or false
Inferior goods typically obey the law of demand because the substitution effect tends to dominate the income effect
a. True b. False
If a firm is operating in a perfectly competitive market in which the market price equals $12, then its
a. marginal revenue is $12 b. marginal revenue is less than $12 c. marginal revenue is greater than $12 d. marginal cost is less than $12 e. marginal cost is greater than $12