According to Keynesians, for monetary policy to have a stimulative effect on GDP, a(n):
a. increase in the money supply lowers the interest rate in order to stimulate higher levels of investment.
b. increase in the money supply lowers the interest rate in order to lower levels of investment.
c. decrease in the money supply lowers interest rate in order to stimulate higher levels of investment
d. decrease in the money supply causes the interest rate to rise in order to stimulate higher levels of investment.
e. increase in the money supply causes the interest rate to rise in order to stimulate higher levels of investment.
a
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Other things being constant, countries with higher rates of saving
a. will have smaller GDPs than countries with lower rates of saving. b. will have higher rates of investment, but slower growth. c. will have higher rates of investment and growth. d. will be operating at less than full employment and potential output.
In economics, items that are used to produce goods and services are known as
A. needs. B. resources. C. wants. D. outputs.