Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise.
b. Demand for real goods and services to rise and M2 money supply to rise.
c. Demand for real goods and services to rise and M2 money multiplier to remain the same.
d. Demand for real goods and services to remain the same and M2 money supply to rise.
.C
You might also like to view...
Policy actions designed to allow relatively open competition in national stock and bond markets are called
A) capital market liberalization. B) financial sector deregulation. C) cross-border mergers and acquisitions. D) regulatory arbitrage.
According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.