Which of the following will be reduced during an expansionary monetary policy?
a. the return to saving
b. spending
c. borrowing
d. money supply
a. the return to saving
You might also like to view...
Aggregate supply is upward sloping in the
a. new classical model. b. classical model. c. monetarist model. d. real business cycle models. e. both a and c.
If the Fed increases the required reserve ratio at a time when banks are holding excess reserves, then: a. the Fed's aim is to increase the money supply
b. banks are likely to lend out more money than they would if the Fed left the reserve ratio alone. c. banks are likely to earn higher profits than they would. d. the money supply will not increase as much as it would if the Fed left the reserve ratio alone. e. the Fed's aim is to conduct open market operations without changing the money supply.
A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve will:
a. result in no net change in AD once people's expectations adjustments have been accounted for b. shift AD in the opposite direction intended once people's expectations adjustments have been accounted for. c. be anticipated and compensated for, causing no significant effect on real or nominal GDP or employment. d. have to be a surprise to change real output in the intended direction.
Which of the following statements is INCORRECT regarding the properties of information products?
A. In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital. B. The average total cost curve for a firm that sells an information product slopes upward. C. The firm experiences economies of operation in the short run. D. Providing an information product entails incurring relatively high fixed costs.