Using the liquidity-preference model, when the Federal Reserve increases the money supply,
a. the equilibrium interest rate decreases
b. the aggregate-demand curve shifts to the left.
c. the quantity of goods and services demanded is unchanged for a given price level.
d. the short-run aggregate-supply curve shifts to the right.
a
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If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?
A) The price falls and the quantity might increase, decrease, or remain the same. B) The price rises and the quantity might increase, decrease or remain the same. C) The quantity decreases and the price might rise, fall, or remain the same. D) The quantity increases and the price might rise, fall, or remain the same.
According to James Duesenberry, knowing someone's absolute income tells us everything about that person's income status
Indicate whether the statement is true or false