Starting from a position of macroeconomic equilibrium at below the full-employment level of real GDP, an increase in the money supply will:
A. raise interest rates, prices, and reduce real GDP.
B. raise interest rates, lower prices, and leave real GDP unchanged.
C. raise interest rates, lower prices, and leave real GDP unchanged.
D. lower interest rates, raise prices, and increase real GDP.
Answer: D
Economics
You might also like to view...
The figure above shows Sally's budget line and one of her indifference curves. At point a, Sally's marginal rate of substitution is ________
A) 1/4 B) 4 C) 10 D) 40
Economics
The deadweight loss of a specific tax will be a small share of the tax revenue collected if:
A) supply is more inelastic than demand. B) demand is more inelastic than supply. C) supply and demand are both elastic. D) supply and demand are both inelastic.
Economics