The economy is in the horizontal portion of the AS curve, investment spending is interest insensitive and there is no liquidity trap. According to the Keynesian transmission mechanism, if the money supply increases the interest rate will __________, investment spending will __________, the AD curve will __________, and Real GDP will __________
A) fall; fall; left; fall
B) rise; drop; left; fall
C) fall; remain unchanged; not shift; not change
D) rise; remain unchanged; not shift; not change
E) none of the above
C
Economics
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The Board of Governors of the Federal Reserve System is the key decision maker for monetary policy.
a. true b. false
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At a certain level of production, the average total cost faced by a monopolist is $6 and the marginal cost faced by the monopolist is $4
If the government decides to regulate the market by setting the price at the efficient price, the good will be sold at a price of: A) $2 per unit. B) $4 per unit. C) $6 per unit. D) $10 per unit.
Economics