Expansionary monetary policy involves actions that:
A. increase the money supply in order to decrease aggregate demand.
B. increase the money supply in order to increase aggregate demand.
C. reduce the money supply in order to decrease aggregate demand.
D. reduce the money supply in order to increase aggregate demand.
Answer: B
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An advantage of the corporation over other forms of business organization is that
A) the owners have unlimited liability. B) a corporation's profits are taxed only once. C) large-scale, low-cost capital is more readily available. D) the decision-making structure is simple.
If people come to expect ongoing inflation, what will happen over time independent of the Fed's response?
a. The long-run aggregate supply curve will shift to the right. b. The aggregate supply curve will continue to shift upward. c. The aggregate demand curve will continue to shift to the right. d. The aggregate supply curve will continue to shift downward. e. The aggregate demand curve will continue to shift to the left.