Assume that the economy is presently in equilibrium. A decline in the interest rate
a. increases planned investment, aggregate demand, and equilibrium income.
b. increases unplanned investment, reducing aggregate demand and equilibrium income.
c. increases unplanned investment, increasing aggregate demand and equilibrium income.
d. increases money demand, the money supply, aggregate demand, and equilibrium income.
A
Economics
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An increase in the real interest rate will decrease consumption and investment
Indicate whether the statement is true or false
Economics
Selling short-term treasury bills and buying longer-term treasury bonds without creating more new money is called:
A. standard monetary policy. B. precommitment policy. C. quantitative easing. D. operation twist.
Economics