When we study macroeconomics,
a. we model tens of thousands of individual supply and demand curves
b. we determine thousands of prices and quantities
c. we employ aggregation to reduce the number of markets we need to understand
d. we add up all the demand and supply curves that are obtained in microeconomics
e. we add up the prices of all goods and services produced in the economy
C
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In the Keynesian model of an open economy, a temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy
A) lower; increase B) lower; decrease C) raise; increase D) raise; decrease
Why did the money supply fall during the Great Depression?
a. The monetary base fell throughout the Great Depression. b. The amount of currency fell during the Great Depression. c. The ratio of currency/deposits fell during the Great Depression. d. The money multipier rose during the Great Depression. e. None of the above.