If velocity is constant and equal to 5, a $20 billion shift of the LM curve to the right will be produced by a __________ in the money supply
A) $100 billion increase
B) $100 billion decrease
C) $4 billion increase
D) $4 billion decrease
C
You might also like to view...
An increase in the price of a firm's output increases the firm's demand for labor because the
A) marginal product of each worker increases. B) value of marginal product of each worker increases. C) value of marginal product curve becomes steeper. D) value of marginal product curve becomes flatter.
A market is said to be concentrated when:
a. the degree of competition in the market increases. b. many firms supply to a small number of consumers. c. the firms producing identical goods are clustered in a particular location. d. a firm or a few firms are able to dictate the competitive conditions in a market. e. there is a huge immigration of workers from neighboring areas.
An inflationary gap will occur when
a. real GDP exceeds nominal GDP. b. nominal GDP exceeds real GDP. c. real GDP exceeds potential GDP. d. potential GDP exceeds real GDP
The primary risk that bondholders face is that:
A. The bond will reduce in price B. The bond issuer will default C. Inflation will decrease D. The rate of return will increase