One result of a contractionary monetary policy would be
A) a decline in the price level.
B) an increase in the money supply.
C) an increase in business investment.
D) lower interest rates.
A
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The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100
Indicate whether the statement is true or false
The value of the expenditure multiplier depends on the marginal propensity to consume
a. True b. False Indicate whether the statement is true or false
The value of the deposit multiplier is 1 divided by the required reserve ratio
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT typically true of an innovation cluster?
A. Innovations decline as the cluster gets larger because the available talent is used up. B. The cluster has a pool of skilled labor that can move from one company to another. C. A major university is usually present. D. Financial sources, like venture capital firms, tend to locate in the same area.