If the Fed adopts a contractionary monetary policy, eventually we can expect:
a. aggregate demand to increase
b. short-run aggregate supply to decrease.
c. interest rates to decrease.
d. planned investment expenditures to decrease.
e. real Gross Domestic Product to increase.
d
Economics
You might also like to view...
If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be
a. of unitary elasticity. b. relatively inelastic. c. relatively elastic. d. perfectly elastic.
Economics
Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?
A. A reduction in extraction costs. B. A reduction in user costs. C. A reduction in total costs. D. A reduction in the price of the resource.
Economics