A decline in the output gap causes the demand for real balances
A) to rise and the interest rate to fall.
B) to fall and the interest rate to rise.
C) and the interest rate to fall.
D) and the interest rate to rise.
C
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Fisher's quantity theory of money suggests that the demand for money is purely a function of ________, and ________ no effect on the demand for money
A) income; interest rates have B) interest rates; income has C) government spending; interest rates have D) expectations; income has
The American Recovery and Reinvestment Act of 2009 is a clear example of:
A. Nondiscretionary fiscal policy that made the cyclically-adjusted budget become more positive B. Nondiscretionary fiscal policy that made the cyclically-adjusted budget become more negative C. Discretionary fiscal policy that made the cyclically-adjusted budget become more positive D. Discretionary fiscal policy that made the cyclically-adjusted budget become more negative