The interest-rate effect suggests that:
A. a decrease in the supply of money will increase interest rates and reduce interest-sensitive
consumption and investment spending.
B. an increase in the price level will increase the demand for money, reduce interest rates,
and decrease consumption and investment spending.
C. an increase in the price level will increase the demand for money, increase interest rates,
and decrease consumption and investment spending.
D. an increase in the price level will decrease the demand for money, reduce interest rates,
and increase consumption and investment spending.
C. an increase in the price level will increase the demand for money, increase interest rates,
and decrease consumption and investment spending.
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When a country exports a good, the ________ to consumers is ________ the ________ to producers
A) gain; equal to; loss B) gain; larger than; loss C) loss; larger than; gain D) gain; smaller than; loss E) loss; smaller than; gain
A negative externality arises when a person engages in an activity that has
a. an adverse effect on a bystander who is not compensated by the person who causes the effect. b. an adverse effect on a bystander who is compensated by the person who causes the effect. c. a beneficial effect on a bystander who pays the person who causes the effect. d. a beneficial effect on a bystander who does not pay the person who causes the effect.