If the Fed has a goal of stable real GDP and government spending increased, which of the following would occur?
a. The money demand would not change, real GDP would not change, the interest rate would decrease, and there would be partial crowding out.
b. Money demand would not change, real GDP would not change, the interest rate would increase, and there would be complete crowding out.
c. Money demand would increase, real GDP would not change, the interest rate would increase, and there would be partial crowding out.
d. Money demand would not change, real GDP would increase, the interest rate would decrease, and there would be complete crowding out.
e. Money demand would increase, real GDP would not change, the interest rate would decrease, and there would be complete crowding out.
B
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Other things remaining the same, a right shift in the supply curve will lead to:
A) a decrease in the equilibrium price and an increase in the equilibrium quantity. B) an increase in the equilibrium price and the equilibrium quantity. C) an increase in the equilibrium price and a decrease in the equilibrium quantity. D) a decrease in the equilibrium price and the equilibrium quantity.
The figure above shows a monopoly's total revenue and total cost curves. The monopoly's marginal revenue equals its marginal cost when it produces
A) 0 units of output. B) 5 units of output. C) 15 units of output. D) 20 units of output.