In the short run, which of the following actions raises the interest rate?
A) a decrease in the demand for money
B) an increase in bond prices
C) an increase in the quantity of money
D) an increase in the demand for money
D
Economics
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In Figure 17-3 above, suppose we are working under assumptions of the Lucas model. With an expansionary monetary policy, the "policy ineffectiveness proposition" is shown as a movement between points
A) A and C. B) A and B. C) D and B. D) D and A. E) A and E.
Economics
If households spend $0.40 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.67. B) 2.5. C) 4. D) 6.
Economics