If there is an exogenous increase in investment spending, Monetarists argue that there would be little or no effect on real output because the interest rate would __________,
investment would __________, saving would __________, and consumption would __________.
A) decline; increase; increase; decrease
B) decline; increase; decrease; increase
C) rise; decrease; decrease; increase
D) rise; decrease; increase; decrease
D
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The market for _____ is an example of an oligopoly
a. hair gel b. body deodorants c. running shoes d. commercial aircrafts
The economy suffers an adverse supply shock. As a result, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; fall C) fall; remain constant D) fall; rise E) rise; fall
Whenever a firm's marginal costs are less than its average costs, its average costs must be:
a. falling. b. rising. c. constant. d. falling, then rising.
A pollution tax will:
A. always be paid entirely by producers. B. not change the price buyers pay for a good. C. be shared between buyers and sellers. D. always be paid entirely by buyers in the form of a price increase equal to the amount of the tax.