If the U.S. government increases its expenditures (without any changes in taxes) while the Federal Reserve Bank decreases the money supply:
A. the AD curve would likely shift to the right.
B. the AD curve would likely remain unchanged.
C. the AD curve would likely shift to the left.
D. what happens to the AD curve is unclear.
Answer: D
Economics
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A) collusive tactics. B) incentives. C) trade-offs. D) opportunity costs.
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. Real GDP in 2012 is equal to
A) $800. B) $640. C) $625. D) $500. E) $200.
Economics