In the short run in the Keynesian model, an increase in the domestic money supply would cause domestic output to ________ and the domestic real interest rate to ________.

A. fall; fall
B. rise; fall
C. fall; rise
D. rise; rise

Answer: B

Economics

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Suppose that the U.S. government required firms to pay a living wage to workers in their subsidiaries or contracting firms in developing countries. As a consequence of this requirement, wages would likely _______ to the living wage and employment would likely _________.

a. rise; increase b. fall; increase c. rise; decrease d. fall; decrease

Economics

The multiple changes in income and output that results from a change in autonomous expenditure is called the multiplier

Indicate whether the statement is true or false

Economics