The direct effect of an increase in the money supply is to
A) raise interest rates as people increase their saving.
B) decrease aggregate demand as people anticipate future economic problems.
C) increase interest rates as people anticipate higher inflation in the future.
D) increase aggregate demand as people try to spend their excess money balances.
D
Economics
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What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if a low-cost process for making cotton cloth wrinkle-free is developed?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
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What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?
What will be an ideal response?
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