If interest rates fall, the M2 money multiplier:
a. Does not change.
b. Rises because C/D and U/D rise, and N/D falls.
c. Falls because C/D and U/D fall, and N/D falls.
d. Falls because C/D, U/D, and N/D rise.
e. Falls because C/D and U/D rise, and N/D falls.
.E
Economics
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Because it is small relative to the market, a perfectly competitive firm faces an inelastic demand curve for its output
a. True b. False
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In 1963, government economists assumed that the MPC for the United States was approximately 0.90 . If taxes were cut by $9 billion, then consumer expenditures would initially be expected to
a. decrease by $9.0 billion. b. increase by $9.0 billion. c. decrease by $8.1 billion. d. increase by $8.1 billion.
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