Suppose the government increases its expenditures by $100 billion and simultaneously reduces the money supply by $100 billion. We definitely know that
A) equilibrium GDP will fall.
B) equilibrium GDP will rise.
C) the interest rate will rise.
D) the interest rate will fall.
C
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The long-run aggregate supply curve (LRAS) corresponds to full-employment real GDP with zero frictional and structural unemployment
a. True b. False Indicate whether the statement is true or false
Suppose Gina gives up a job paying $30,000 a year so that she can start her own pizza business. She takes $100,000 from her savings account (which paid a 6 percent rate of interest) to pay for equipment, materials and labor, and after one year her total revenue is $70,000 . Gina's profit-related income is
a. $70,000 b. $40,000 c. $34,000 d. $30,000 e. $6,000
Although a monopoly can charge any price it wishes, it chooses:
a. the highest price. b. price equal to marginal cost. c. competitive prices. d. a fair price. e. the price that maximizes profit.
An experimental study is one which individuals are randomly assigned to the treatment and control groups.
A. True B. False C. Uncertain