The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:
a. interest rate on savings.
b. inflation on investment.
c. interest rate on investment.
d. interest rate on bond prices.
c
Economics
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The indifference curve in the above diagram yields Juan 100 units of utility. If Juan's money income were to increase by 20 percent, the indifference curve would:
A) shift leftward. B) shift rightward. C) become steeper. D) not be affected.
Economics
An optimizing consumer has to choose between two goods–Good A priced at PA and Good B priced at PB
Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B, the consumer's well-being will be maximized at the point where: A) MBA = MBB. B) MBA/PB=MBB/PA. C) MBA/PA = MBB/PB. D) MBA = MBB/PB.
Economics