Trace through the Keynesian cause-and-effect sequence. A decrease in the money supply will cause the interest rate to
a. fall, boosting investment and shifting the AD curve to the right, leading to an increase in real GDP
b. fall, boosting investment and shifting the AD curve to the right, leading to a decrease in real GDP
c. rise, cutting investment and shifting the AD curve to the right, leading to an increase in real GDP
d. rise, boosting investment and shifting the AD curve to the right, leading to an increase in real GDP
e. rise, cutting investment and shifting the AD curve to the left, leading to a decrease in real GDP
E
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Changes in tax laws in 1993
A) reduced Federal revenues by making the tax code more regressive. B) reduced Federal revenues by making the tax code more progressive. C) increased Federal revenues by making the tax code more regressive. D) increased Federal revenues by making the tax code more progressive.
If the CPI for 2008 was 112, the typical market basket purchased that year would cost
a. 12 percent more than the same market basket purchased the previous year b. 112 percent more than the same market basket purchased the previous year c. 12 percent more than the same market basket purchased in the base year d. 112 percent more than the same market basket purchased in the base year e. more than the same market basket purchased during any previous year