Refer to the given market-for-money diagrams. If the Federal Reserve increased the stock of money, the
A. D3 curve would shift leftward and the equilibrium interest rate would rise.
B. S curve would shift leftward and the equilibrium interest rate would rise.
C. S curve would shift rightward and the equilibrium interest rate would fall.
D. D3 curve would shift leftward and the equilibrium interest rate would fall.
Ans: C. S curve would shift rightward and the equilibrium interest rate would fall.
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During a business cycle recession, it is very likely that real GDP will
A) be greater than potential GDP. B) be less than potential GDP. C) equal nominal GDP and equal potential GDP. D) exceed nominal GDP. E) equal nominal GDP but not equal potential GDP.
__________ argue that any exogenous decrease in investment spending would be countered automatically by either increased consumption or interest-sensitive investment spending
A) Monetarists B) Keynesians C) Classical economists D) None of the above.
In its original role as lender of last resort, the Fed was supposed to: a. provide mortgage money for the poor
b. keep the money supply from drying up during economic panics. c. lend money to people in localities not served by commercial banks. d. lend money to developing nations whose own central banks had failed.
When management shuts down a plant and does not allow workers to perform their jobs, there is a
A. Walkout. B. Strike. C. Strikebreaker. D. Lockout.