A reduction in the money supply will result in:
A) a lower interest rate and more negative output gap
B) a higher interest rate and more positive output gap
C) a lower interest rate and more positive output gap
D) a higher interest rates and more negative output gap
D
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What is the price elasticity of supply? List and briefly define three cases of the price elasticity of supply
What will be an ideal response?
It would always be a mistake to view
a. a streetlight as a common resource. b. a nontoll road as a public good. c. the environment as a common resource. d. a lighthouse as a public good.
When a single person (or small group) has the ability to influence market prices, there is
a. competition.
b. market power.
c. an externality.
d. a lack of property rights.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.