Suppose the central bank decreases the growth rate of the money supply. In the short run, this policy change will affect
a. both the unemployment rate and the inflation rate.
b. the unemployment rate but not the inflation rate.
c. the inflation rate but not the unemployment rate.
d. neither the inflation rate nor the unemployment rate.
a
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The interest-rate-based monetary policy transmission mechanism emphasizes the
A) indirect effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate. B) direct effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level. C) direct effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate. D) indirect effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
The value of the market to society is
A. the area under the demand curve from the origin to the quantity purchased. B. the area under the demand curve but above the price line from the origin to the quantity purchased. C. the area under the supply curve from the origin to the quantity produced. D. the area under the demand curve but above the supply curve from the origin to the quantity purchased.