When the Fed reduces the real interest rate, which of the following does NOT increase?
A) consumption
B) investment
C) government purchases
D) net exports
C
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What does the takings clause indicate as far as why and how private property can be seized?
What will be an ideal response?
When real GDP increases, people demand
A) the same quantity of real money. B) less real money. C) more real money. D) more money in nominal terms but less in real terms.
If a country chooses to have a monetary policy oriented toward domestic goals and a fixed exchange rate, then
A) it can have the freedom of international capital movements. B) it cannot have the freedom of international capital movements. C) it cannot balance its current account. D) it cannot have fiscal policy oriented toward domestic goals. E) it cannot control money supply growth.
One reason that some criticized government price regulations was ______________, where the regulated ended up playing a large role in setting the regulations that were intended to control them.
a. regulatory capture b. regulation apprehension c. legal backtreading d. government abandonment