A decrease in real GDP can
A) shift money demand to the right and increase the interest rate.
B) shift money demand to the left and increase the interest rate.
C) shift money demand to the right and decrease the interest rate.
D) shift money demand to the left and decrease the interest rate.
D
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The personal distribution of income shows
A) that labor receives the largest percentage of total income. B) how profit accounts for the largest fraction of total income. C) that the richest 20 percent of households receive 23 percent of total income. D) that interest accounts for most of the income of the richest 20 percent of households. E) that the poorest 20 percent of households receive less than 4 percent of total income.
Without changes in MC to maximize profits, the firm will produce at point ________ on the new demand curve and lower price to ________
A) E1; P1 B) E0; P0 C) E2; P2 D) E0 or E1; P0