Which of the following is an equilibrium condition for the goods market?
A) M = kPQ
B) Desired saving and desired investment
C) Money demand = money supply
D) IS = LM
B
Economics
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In the interest-rate-based transmission mechanism, a decrease in the money supply will
A) reduce investment, shift the aggregate demand function inward, and lower real Gross Domestic Product (GDP). B) reduce the rate of interest and the level of investment. C) increase the price level. D) shift the aggregate supply function inward and increase real Gross Domestic Product (GDP).
Economics
An increase in wealth would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
Economics