If a contractionary monetary policy lowers the price level by more than expected, it raises the real value of consumer debt. This reduces consumer expenditure through
A) the bank lending channel.
B) Tobin's q.
C) the traditional interest-rate channel.
D) the household liquidity effect.
D
Economics
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In any year, real GDP
A) must always be less than potential GDP. B) might be greater or less than potential GDP. C) will always be greater than potential GDP because of the tendency of nations to incur inflation. D) always equals potential GDP.
Economics
If a firm increases output and its average total cost rises, then the firm is experiencing economies of scale
a. True b. False Indicate whether the statement is true or false
Economics