An increase in the money supply will affect aggregate demand
A) only if the increase in the money supply causes interest rates to rise.
B) only if the increase in the money supply causes people to buy less goods and services.
C) only if the increase in the money supply causes people to increase their saving.
D) if the increase in the money supply causes interest rates to fall and/or causes people to buy more goods and services.
D
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Which of the following would be considered a variable input in the short run? a. The size of a firm's plant
b. The acreage of an apple farmer's orchard. c. The production capacity of a machine. d. None of the above.
Over time, an increase in a nation's stock of physical capital will
a. shift the production possibilities curve inward. b. cause an economy to operate inside its production possibilities curve. c. shift the production possibilities curve outward. d. eliminate the basic economic problem of scarcity.