Assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to ________, which will ___________ investment spending
A. decrease; decrease
B. decrease; increase
C. increase; increase
D. increase; decrease
B. decrease; increase
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Define official settlements account and U.S. official reserves. Discuss the differences between the two terms
What will be an ideal response?
In recent decades, the trend among central banks has been to adopt ________
A) high employment as a central goal B) a dual mandate that gives equal weight to both price stability and low unemployment. C) price stability as a central goal D) a target of zero inflation E) none of the above
If a monopolistically competitive firm raises its price,
a. quantity demanded falls to zero b. quantity demanded declines, but not to zero c. the market supply curve shifts outward d. the market supply curve shifts inward e. quantity demanded remains constant
Price elasticity of supply
a. is always a number between 0 and 1 b. is always a negative number c. is always greater than or equal to 0 d. is always greater than 1. e. can take on any value.