The Keynesian cause-and-effect sequence predicts that an increase in the money supply will cause interest rates to:
a. fall, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP.
b. fall, boosting investment and shifting the AD curve rightward, leading to a decrease in real GDP.
c. rise, cutting investment and shifting the AD curve rightward, leading to an increase in real GDP.
d. rise, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP.
e. fall, cutting investment and shifting the AD curve leftward, leading to a decrease in real GDP.
a
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Exhibit 21-1 Production possibilities curves
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In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. Suppose Pada produces at point B on its PPC. How much corn is the country able to produce?
A. 2. B. 15. C. 10. D. 6.
Over the last 100 years or so, the U.S. economy has grown annually at an average rate of:
A. 1 %. B. 2 %. C. 3 %. D. 4 %.