If the economy is not fully using its inputs, pumping money into the economy will put ________ pressure on interest rates and will tend to ________ output
A) upward; increase
B) upward; decrease
C) downward; increase
D) downward; decrease
C
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Which of the following statements is TRUE about the difference between a public and private good?
A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared. B) The government produces private goods while corporations produce public goods. C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others. D) Resources are used to produce private goods but are not used to produce public goods.
If interest rates in the U.S. increases relative to interest rates in Europe:
A. the price of U.S. assets should increase. B. the supply of euros on the foreign exchange market would increase. C. the demand for dollars on the foreign exchange market would increase. D. all of the answers given are correct.