When monetary policy reduces interest rates,
A. The income for retired people increases.
B. The money supply curve decreases.
C. Income is redistributed from lenders to borrowers.
D. The construction industry is negatively impacted.
Answer: C
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Given the information in the table above, if the world equilibrium price of widgets were 4 cloth, then
A) both countries could benefit from trade with each other. B) neither country could benefit from trade with each other. C) each country will want to export the good in which it enjoys comparative advantage. D) neither country will want to export the good in which it enjoys comparative advantage. E) both countries will want to specialize in cloth.
Aggregate supply in the new classical aggregate supply
a. is vertical in the short-run. b. is horizontal in the short-run. c. is upward sloping in the short-run. d. None of the above