For every dollar's worth of government securities the Fed sells, the money supply
A) rises by more than $1.
B) rises by less than $1.
C) falls by less than $1.
D) falls by more than $1.
D
Economics
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Under the Classical assumptions, an increase in government spending causes
A) income to rise. B) income to fall. C) interest rates to rise. D) interest rates to fall.
Economics
In the simplest Keynesian expenditure model, which of the following is fixed to allow for easy evaluation of changes in demand due to real income?
a. the price level b. interest rates c. tastes and preferences d. future expectations
Economics