If the Fed expands the money supply by $1 trillion, what will happen in the money market?
a. The equilibrium interest rate will rise, and less money will be exchanged in equilibrium.
b. The equilibrium interest rate will fall, and more money will exchanged in equilibrium.
c. The equilibrium interest rate will not change.
d. None of the above.
b
Economics
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Centrally planned economies tend to grow more quickly than market economies
Indicate whether the statement is true or false
Economics
Income on the horizontal axis at which the vertical distance to the 45-degree line is less than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment, and thus ________ pressure on output
A) positive, upward B) positive, downward C) negative, upward D) negative, downward
Economics