A decrease in the money supply:
a. raises the interest rate, causing an increase in investment and an increase in GDP.
b. lowers the interest rate, causing an increase in investment and an increase in GDP.
c. raises the interest rate, causing a decrease in investment and a decrease in GDP.
d. lowers the interest rate, causing a decrease in investment and an increase in GDP.
e. lowers the interest rate, causing a decrease in investment and a decrease in GDP.
c
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Which of the following is an example of a pure public good?
A) a lighthouse B) burritos C) a high school football game D) redwood forests
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to increase from point a to point b?
A. a tax on wheat production B. an increase in the price of wheat C. a decrease in the price of wheat D. a subsidy for wheat production